Credit card use ‘on the up’

More and more British consumers are using credit card debt to fund their everyday activities, according to a new study.

Figures compiled by Fool.co.uk have shown that fewer people in the UK now carry cash and an increasingly large proportion are using plastic to pay their way.

The research also found that debit card transactions now account for more than a third of all spending nationwide, while a third of people use credit cards on a regular basis.

But while credit card debt becomes more commonly used across the country, the price comparison firm behind the research has warned that consumers need to be realistic about how much money they can afford to spend.

“Plastic can be fantastic, but relying on money we can’t see is a reflection of how easy it has been to rely on credit in recent years,” said David Kuo, head of personal finance at Fool.co.uk.

Research from the Post Office recently suggested that the rising cost of living in the UK is leaving many thousands of families out of pocket and unable to save.