Brits 'to spend more on credit cards'

By Sarah Engle, Thu 21 Jan 2010 - Published in Credit Cards

Living through the recession has led to millions of people relying on their credit cards to pay for their day-to-day expenses, it has been claimed.

Research carried out by the Post Office found that 38 per cent of UK adults, or more than 12 million people, will use their credit card to buy everyday items such as groceries in January.

The Consumer Credit Report explained that this is an eight per cent increase on the number resorting to this last year and claimed that 2.6 million people will put more on their credit cards this January than they did in 2009.

In addition, the survey suggested that ten per cent of users, or around 3.3 million people, expect to spend more across 2010 on their cards than they did last year, while three per cent intend to increase their limit or sign up to another product.

Az Alibhai, Post Office head of lending, commented: "The continued trend for people to rely on their cards for basic day-to-day purchases is a concern. Whilst the recession has left many with no choice, these debts build up quickly if not paid off in full each month."

Price comparison website moneysupermarket.com recently said that credit card companies should provide their customers with clearer terms and conditions.

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