Brits becoming reliant on credit cards

According to a recent report many Brits are becoming reliant on their credit cards, using them to make both day to day and one off purchases but failing to repay the balance each month in many cases.

The figures show that less than 50% of cardholder repay their balance in full each month, and are therefore often hit with hefty interest charges.

One industry expert stated that more people tended to become reliant on credit cards at this time of year whilst still suffering the financial hangover from Christmas.

He 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.”

Credit cards have become known for causing spiralling debt problems for many consumers that find it difficult to control their spending and only repay a small amount of the outstanding balance on a monthly basis, often leaving them in debt for years.

More and more of us are using credit cards to fund day to day living rather than for emergencies or convenience, and experts are urging consumer to take stock of their finances and rein in their credit card spending before it becomes difficult to control.