Many clocked up record sums on credit cards in 2007
Although Christmas spending on credit cards was down on previous years in 2007 a recent report has shown that there was a sharp increase in credit card spending in the latter part of last year, with over £32 billion being spent on credit cards in the last three months of the year, which was the second highest figure on record.
During the same period close to £60 billion was spent on debit cards, which was the highest figure on record according to industry officials from APACS.
Officials from the charity Credit Action are concerned that credit card debt is on the increase. Although many consumers have vowed to cut back on their credit card spending due to the effects of the credit crunch and strained household finances, rising costs have forced many to pay for day to day purchases and even make mortgage repayments on their credit cards in order to stay afloat financially, and debt officials state that this could prove to be very dangerous.
A number of household expenses have risen over recent months, and this includes the cost of petrol, food costs, and energy price hikes, all of which have added to the financial strain that many households are already facing, and have resulted in many having to use their credit cards to pay bills.
Officials state that this is usually the start of spiralling debt problems. Debt charity officials added that those that find they are having to do this regularly need to seek professional debt advice as soon as possible before their financial woes get out of hand.
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