A worrying proportion of the nation is starting this New Year with over £5,000 of debt on their credit card according to price comparison site, uSwitch.com. 

The research also highlighted that nearly 60% of people paid for Christmas 2012 with plastic.

uSwitch.com says that With pay rises unlikely to keep up with hikes in living costs, over half of consumers expect to take a year or more to pay off their credit card debt, while 15% say that it may take as long as three years to settle their balance.

While a 7% can’t imagine clearing it at all.

Michael Ossei, personal finance expert at uSwitch.com, said: “It’s easy to get carried away at Christmas and merrily put everything on plastic, but there comes a time when people have to wake up and smell the coffee.

“Credit cards can be a practical and cost-effective way to shop – but only if you can clear your full balance at the end of the month.

“Most cards offer a 56-day interest free period, but once this is over consumers could be slapped with a hefty fee. Store cards can be even more expensive, charging as much as a stomach-churning 30% interest rate.”

Despite the rising level of personal debt in the UK, only 29% of consumers cut back on costs this Christmas.

Nearly half spent roughly the same as last year and a further 23% consumers spent more this year than last, with one in ten spending over £1,000.

Ossei advised: “Balance transfer cards can be a good choice for those struggling to clear their debt, offering more breathing space to pay off your balance, without letting the debt spiral out of control. There are some great options out there:

Barclaycard currently offers a 36-month balance transfer card with a 4.9% interest rate and no balance transfer fee.

“And for those who are able to pay back their debt within two years, there are an even greater range of cards to choose from.

“But because balance transfer deals are so sought after, lenders can be choosy. You are more likely to qualify if you have a squeaky clean credit rating and a minimum household income of £20,000.”

Consumers are advised that if they do resort to a credit card as a means of managing your debt, then it is vital that they shop around for the best card for each individual financial situation.