February 6, 2009
Millions Rely On Credit
Millions of consumers are still reliant on credit for day-to-day living costs in 2009 according to the Post Office.
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.
It also found 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. 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.
With almost half of all credit card holders not planning to pay off their credit card bills in full each month, it might be time to reconsider whether using unsecured debt is the best strategy.
Az Alibhai head of lending at the Post Office says: “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.”
If you are living by plastic, it’s time to think again. The more that is amassed on a credit card, the greater the risk of missing rising payments. Talk to a financial adviser and see what you can do to change your spending and borrowing habits for the better.
SOURCE: Post Office, 04/02/09
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