Increase in credit card spending could lead to debt help

21/01/2010

Millions of people could require debt advice this year as they plan to make the most of their credit card lifestyle.

According to the Post Office's Consumer Credit Report, 2.6 million consumers are planning to spend more on their credit cards this month than in January 2009.

A further one in five said that it will take them more than a year to pay off last year's old debts, which could fuel a renewed demand for debt help.

Some 12 million people are planning to use their credit card this month for everyday purchases such as groceries - an eight per cent increase on last year.

Az Alibhai, the Post Office's head of lending, said it is "understandable" that people use credit cards to fund more expensive purchases, but admitted that the trend of relying on them is "a concern".

"Whilst the recession has left many with no choice, these debts build up quickly if not paid off in full each month, and can be extremely costly over time when interest is added," he explained.

According to the UK Payments Administration, the credit card industry is to place renewed focus on reducing the cost of paying off credit card debt.

Tags; Income Worries and Debt,

• Share
• 
• 
• Store
• 
• Follow
•