CREDIT CARDS

Brits turning to credit cards in tough times

Financial trouble has forced Brits to use credit cards

Research carried out by comparison website moneysupermarket.com has looked into the habits of British consumers who use credit cards with interesting results.

Approximately a quarter of Brits (around 11 million people) use credit cards as a safety net until they receive their next payment installation from work.

Rather more alarming is that, from this particular section of people, approximately 9%resort to a credit card less than 15 days after they have been paid.

This effectively means that of those people who get paid monthly in Britain, which remains the majority, around one in ten could be funding the fortnight which immediately precedes their payday on a credit card.

Kevin Mountford, Head of Banking at moneysupermarket.com, said: “With most of the population feeling the pinch at the moment, it’s no surprise to see so many people reliant on credit so early in the month.

However, unless you plan this properly and know you’re able to pay off your balance, this can be a dangerous trap to fall into. A card offering an interest free period on purchases is a good solution, especially for larger items, but if you are using a card to tide you over until the end of the month, still try and pay it off when you get paid.”

Approximately 35% of Brits use a credit for ‘everyday items’ which includes things like petrol and groceries.

32% say that they only use their credit card for bigger expenses such as holidays, which they claim they may not be able to repay immediately.

The findings certainly indicate a change in how Brits are managing their finances generally speaking. Credit cards are becoming an increasingly essential tool for so many people as they strive to simply get from one month to the next.

If you are forced into spending the majority of your monthly salary as soon as you receive it, then a prepaid credit card could help you budget your everyday spending so you have more money left at the end of the month.

Tags: bad credit credit cards, bank account, basic bank accounts, best credit cards for bad credit history, Card One Banking, compare credit cards, compare prepaid cards, credit card companies, CREDIT CARDS, debit cards