Research commissioned by credit reference agency Equifax revealed that one in five people pay off less than 25% of their credit card balance each month, and 60% don’t know what rate of interest they are paying on their cards.

A third go into overdraft every month and 10% have run out of money by pay day.

Neil Munroe, external affairs director for Equifax, said:

“Even with the latest news that inflation has dropped, it’s still hard for families to balance living costs with many not having a salary increase so far this year.”

He suggests thoroughly reviewing finances every year, saying:

“We think it’s very worthwhile to try to carry out a financial health check at least once a year, just to review overall finances and give them the control they need to effectively manage their debts.”