Britons relying on credit cards for daily spend
By UK CreditCards.com
Over a third of Britons are planning to rely on their credit cards for everyday purchases during January, according to new research by the Post Office.
The impact of the recession and Christmas spending is forcing 12 million UK adults to fund this month's day-to-day expenses by using their credit cards.
Furthermore, the company's latest Consumer Credit Report revealed that 3.3 million people believe they will spend more on their credit cards this year than in 2009.
"It's understandable that people may want to use credit cards to fund more expensive purchases, particularly at the beginning of the year when many are still feeling the pinch from Christmas," commented Az Alibhai, head of lending at the Post Office. "But the continued trend for people to rely on their cards for basic day-to-day purchases is a concern."
However, Mr Alibhai added that some consumers could reduce the immediate burden of their credit card debt by transferring their balances to a 0% offering.
The British Bankers' Association claimed recently that Britons paid back a combined £5.9bn in credit card debt during November 2009, which was £100m more than the total amount borrowed.
Published: 26 January 2010
- Financial capability: Managing money and planning ahead – A recent report on financial capability based on six elements shows many Brits need to hone their financial skills. This short series will give tips on how to improve each area ...
- What we buy and how we spend: A decade of change – The Payments Council took a look back on the past decade in a February 2013 report, which found that Brits are splashing out on fun -- and moving toward a cash-free lifestyle ...
- Glimmers of optimism appear among financial gloom – With Christmas debt looming and warnings of a triple-dip recession in the headlines, you might think consumers are feeling pessimistic about their finances. But recent research shows otherwise ...