Barclays Bank Chief Executive, Matt Barrett, yesterday told the unvarnished truth about borrowing on credit cards:
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"It is too expensive." "I do not borrow on credit cards," Mr Barrett replied. "It is too expensive. I have four young children. I give them advice not to pile up debts on their credit cards." |
Mr Barrett was giving evidence to the House of Commons Treasury Committee yesterday and was responding to questions posed by an already mainly sceptical and antipathetical group of MPs.
It brings to mind the gaffe by Gerald Ratner, scion of a major jewellery retailing chain, who in 1991 described a silver decanter sold by his firm as "total crap". True, of course, but it really shouldn't have been said - and the effects on the business were dramatic.
As for Mr Barrett, his comments are spot-on. As a former banker, I never use my credit cards to borrow - there are much cheaper ways of borrowing money, if the need arises. But he still shouldn't have stated this quite so baldly - at least no-one can say he doesn't tell it like it is, and it shouldn't detract from the beneficial changes he has brought to Barclays since taking over.
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