Credit card spending rises as households try and keep on top of payments

According to a recent report there has been a sharp rise in credit card spending, much of which has been attributed to households having to rely on credit in order to meet their day to day expenses or pay their bills.

Consumers in the UK have had to put up with a number of payment increases over recent months, and whilst interest rates have come down for a third time since December, other bills and costs have risen, including energy bills, water bills, petrol, and food.

As a result of these rising costs many people are struggling to make ends meet, and in order to try and avoid defaulting on repayments and bills, as well as being able to afford living costs, many have turned to their credit cards, resulting in credit card spending nearly trebling to £350 million in the past month.

Experts have warned that using a credit card to find day to day expenses or pay bills can be a slippery slope, as consumers will quickly find that they no longer have the credit that they need and will have to look for an alternative – in addition to paying off the credit card debt that they have accrued.

However, whilst industry experts have said that it is not a good idea to use your card regularly to fund living costs and bills they have also recognised that this may be necessary from time to time.

In these cases experts have recommended that consumers find the most affordable credit card deal so that they minimise on the amount that has to be repaid. Borrowers should carefully compare credit card deals in order to find the most affordable one, but should bear in mind the increased difficulties in getting finance due to tight credit conditions.

Comments

• Search

• Recently Written

  • Credit card defaults result in losses for American Express
  • Consumers can enjoy benefits of Abbey credit card
  • Pre-paid debit card for under 18s welcomed
  • Credit card difficulties could impact on mortgage repayments
  • Credit card spending rises as households try and keep on top of payments
  • Credit card interest rates have been rising
  • More than half of credit card customers avoid interest
  • Tories launch attack on credit card providers
  • Increased warranties for Nationwide credit card customers
  • Many people lie to get their hands on a credit card

• Categories

  • Latest News

• Archives

  • May 2008
  • April 2008
  • March 2008
  • February 2008