It has been revealed by an accountancy firm that bad credit card debt is set to rise, by as much as 9%.

According to the group, “bad debts in the sector have reached historic highs”, said a spokesman. Currently, the figure stands at 6%.

The soaring debt is bad news, especially as borrowing is down 3% and the number of cards in circulation has plummeted by 8%.

The organisation noted that this trend is because credit card firms are restricting applications to members and because consumer confidence is low.

“The recent announcement by one major issuer that they would not generally seek to acquire new credit card customers without those same customers also holding a current account with them is in stark contrast to the time when credit card issuers accounted for one in every four pieces of junk mail that made it through our letterboxes,” the spokesman noted on the decline.

Card groups fear that an increase in rates will follow and an expansion of yearly fees.