The Post Office has found that one-in-four credit card holders have begun the new year dependent on plastic.

A massive 41% of consumers will to rely on their credit card this January to cover living costs, with half of credit card holders intending to use their cards in the January sales. A further 28% of card holders said they planned to make big purchases such as holidays with their cards over the course of this month.

With a huge 53% of people not paying their credit card off in full each month, the Post Office has urged consumers to overhaul their finances in the New Year, particularly the rate they are paying on their credit card.

Gary Fitton, director of lending at the Post Office, said: “Typically, January is the time of year when people struggle with their money the most. Many people have over-stretched themselves over the Christmas period and have little choice but to use their credit card in the New Year.”

He added: “But with some credit and store cards charging as much as 29.9% APR – it’s crucial to find the right deal. Borrowers would be much better off opting for a credit card that offers 0% on purchases or balance transfers, allowing them time to pay off their debt in full without being charged extortionate rates for the interest incurred.”