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Friday 06th of February 2009
February 5, 2009

One third of consumers pay everyday expenses on credit


by David Masters
One third of consumers pay everyday expenses on credit

Almost one third of UK consumers use a credit card to pay for everyday items such as groceries, a Post Office survey has revealed.

The poll showed that 10 million British adults intend to use their credit cards to cover day-to-day living expenses during the first part of this year.

Meanwhile, 2.6 million people intend to spend more on their credit card this year than last year, despite economic recession and increased risk of redundancy.

Worryingly, 45% of credit card holders said they are not planning to pay off their bill in full at the end of each month - meaning that they will become increasingly entangled in debt.

The Post Office said reliance on credit is not limited to one particular social group, but affects people from all backgrounds.

Az Alibhai, Post Office head of lending, 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.”

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