You are here: Home - Credit Cards & Loans -

Millions relying on credit

0
Written by:
12/02/2009

Millions of consumers are still reliant on credit for day-to-day living costs in 2009 according to the Post Office latest Consumer Credit Report.

The survey reveals over 10 million adults intend to use their credit card in the first part of the year for daily purchases such as grocery shopping, reflecting the extent to which the credit crunch has impacted on people’s finances over the last year.

The research shows that 2.6 million people intend to spend even more on their credit cards than last year, with an average spend in January of £318. The trend of relying on credit to fund day-to-day spending is not unique to one particular social group and is affecting credit card holders across the UK.

Worryingly, the trend looks set to continue, with 4.1 million card holders planning to spend less on each purchase but use their cards more frequently for general living costs throughout the whole of 2009.

Post Office head of lending Az Alibhai said: “In the current climate, many people have little choice but to rely on their credit cards to fund more expensive purchases. However, what is worrying, is the trend for people to continue to rely on their cards for basic day-to-day purchases, which could be expensive if you only pay off the minimum amount on your credit card each month and have a high rate of interest.”

Tagged:

Tag Box

Debt

Pension

Spending

Financial fitness

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Which ISA is right for you? A round up of the six products available in 2017

From cash to innovative finance to lifetime, here's our guide to the ISA products available to savers this yea...

Guide to buy-to-let tax changes

In late 2015, former Chancellor George Osborne announced a range of  tax measures aimed at landlords, which t...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Five fund tips for a 0.25% interest rate environment

With interest rates stuck at a record low 0.25% and expectations rates could fall to close to zero, here are ...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Investing your money

Alliance Trust Plc gives you smart insight into how to invest your money

Money Tips of the Week

Read previous post:
Credit crunch stirs arguments among British couples

The economic crisis is having an effect on British relationships with almost a third of couples admitting to arguing more...

Close