‘The higher limit seems like a lifeline’
LAW firm worker Mark Probets, 41, racked up £6,000 of credit card debt after ‘predatory’ firms increased his borrowing limits.
Two years ago, he spent £1,300 on a Capital One card for a holiday. When he returned, he could make only the minimum payments and interest quickly accumulated.
He admits he was living beyond his means, but later took out three more cards. Despite this, three of the four card providers increased his credit limit uninvited. Mark, of London, says: ‘ The industry is predatory. They constantly offer you more money to draw you in deeper. You see it as a lifeline and you grab it. That’s how they get you. You think you’ll pay it off somehow.’
In the end Mark, who also took out £9,500 in personal loans, was forced to contact PayPlan, which consolidated his debts and negotiated a lower repayment plan.
A Capital One spokesman said: ‘We tell customers it is their choice to accept an increase.’