Hong Kong's credit card holders are spending too much with their credit cards and many are settling only the monthly minimum, exposing them to interest rates of 30% or more, reports the South China Morning Post, citing a survey conducted by the University of Hong Kong.
Dr Lam Pun-lee, an associate professor with the Polytechnic University's school of accounting and finance, told the Post that public education on financial risks arising from the reckless use of credit cards is urgently needed. He also urges banks to exercise restraint on how they offer credit.
The Post says that credit card debt has been rising this year, with the Monetary Authority recording total receivables of HK$74.5 billion on 13.1 million credit cards in the second quarter, up HK$2.9 billion from the first.
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