CREDIT CARDS

2011 crowned ‘Year of the Credit Card’

2011 has been dubbed the ’Year of the Credit Card’ by one leading Building Society as Brits flashed their plastic an average of 267 times.

Forking out more than £17,000 in the last year, Brits have been spending heavily on food and petrol. The latest study from Skipton Building Society found that the average person has racked up just under £5,000 in credit card debt over the last 12 months.

Food and petrol are not the only goods the nation is putting on credit, the study found that many are now putting their essential life costs on there too, this includes bills, rent, car and medical expenses.

Despite this, people are also relying on credit cards for life’s luxuries, spending £491.76 a month on alcohol, coffee shops and spending sprees.

Holidays are also high on the credit card debt total, with Brits putting an average of £1,392.26 of holiday expenses on plastic.

According to the report, Brits were relying on credit cards heavily last year, spending a staggering £761.08 just on nights out with friends and family.

Tracy Fletcher, Head of Corporate Communications at Skipton, said; "Credit cards can be useful if managed correctly but this research indicates how easy it is for people to get into the habit of using their cards to pay for things they want, living beyond their means in order to get things now rather than saving up for them instead.

"Owning a credit card makes it really easy to spend money, and just as easy to lose track of what's been bought on it.

"People must not forget that any items bought on the card have to be paid for eventually. So, while it might seem like a quick fix in the short term, it can prove to be a nightmare later on.”

Going into 2012, the average person believes they have £2,271.50 in outstanding debt on their credit card, yet the research found they were not concerned about this.

Tags: credit card debt, CREDIT CARDS, credit reliance, UK spending, year of credit