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Debt woes don’t deter BT credit card

Posted in General, Mel Varley, Latest reporters' blogs June 27th, 2007 by Melinda Varley

If you read the Sunday papers you will have noticed that for the past couple of weeks they have had a lot of reports over the growing concern of personal debt in the UK.

The problem of debt is so out of control the Bank of England has said it will raise interest rates and make loan approvals even harder over the next few months in order to protect people from themselves.

But, if you’re a big company wanting your finger in yet another pie why not launch a credit card?

Is it just me or is BT trying to take over the UK? The company has broadband, TV and of course its telecoms services, three of the most powerful mediums and the highest money earning services so why would it want financial services too?

The teleco may have been the first to announce its plans of a bundled home entertainment package (TV, broadband and phone on one bill from one company) last year but Virgin beat them to the money market almost ten years ago.

Sure the card offers loyalty benefits but also encourage Britons to spend £250 a month on the card in order to receive a discount off their BT bills. That’s hardly responsible considering the amount of debt we are in (over £130,000,000,000 last month).

Is BT turning into another Virgin with its BT credit card offering or is it merely trying to keep up with the competition?