Report points to ‘credit card reliance’

A report from the Post Office has highlighted a growing reliance on credit card debt among consumers around the UK.

Research carried out on behalf of the organisation found that a quarter of all credit card holders are now more dependant on plastic than was the case a year ago.

Furthermore, many thousands of Britons are believed to be using
credit card debt to fund their everyday expenditure, the latest figures demonstrate.

“Many people have over-stretched themselves over the Christmas period and have little choice but to use their credit card in the new year,” said Gary Fitton, director of lending at the Post Office.

“Borrowers would be much better off opting for a credit card which offers factors such as zero per cent on purchases or balance transfers allowing them time to pay off their debt in full without being charged extortionate rates for the interest incurred.”

According estimates from the UK’s payment association Apacs, around £11.7 billion was spent nationwide on credit cards over the course of December 2007.