Related Credit Card Article

"Brits become more dependant on credit cards"

By admin | April 1st, 2008 | Credit Cards, General

A recent report has shown how many Brits have become increasingly dependant upon their credit cards, particularly given their strained financial situations and the difficulties that many are experiencing when it comes to getting other forms of credit. This increasing dependence on credit cards is likely to lead to spiralling debt levels, and there are concerns that it could result in many people pushing themselves over the financial edge.

According to the report more and more of us are using our credit cards to pay for our day to day living costs rather than for ease, convenience, and flexibility, but many of us are also only making small repayments on the balance each month rather than paying off all or at least a large chunk of the balance. This is resulting in cardholders being charged high levels of interest on their balance, and also being charged hefty fees when they miss repayments or exceed their credit limits.

An increasing number of consumers are now apparently using their credit cards to make necessary day to day purchases rather than simply to enjoy convenient cashless spending, and under 50% of cardholders are paying off their balance in full each month, leading to rising debt levels. This is causing concern in a financial climate that is already volatile and turbulent.

According to one industry official the start of the New Year is the worst time for cardholders, with many relying on their cards as a result of overspending during the festive season and leaving themselves financial strained. 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.”

Tags: Credit Cards

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