A significant percentage of the population have expressed a fear of borrowing using credit, which means many are losing out on the potential benefits of certain financial products.
The financial crisis throughout the UK and Europe has left many people afraid of using cards as well as other forms of credit, such as personal loans.
As a result, Brits are losing out on the advantages which are often available on credit cards.
A survey conducted by money experts revealed that a third of Brits (34%) are less likely to borrow credit and get into debt since the financial crisis has struck.
Experts are not surprised as figures released show between January and March 2012 that 1,880 people faced redundancy.
According to debt statistics, for over a year throughout the same period almost 900,000 people have been unemployed for over a year.
Debt statistics also revealed that 8,500 new debt issues were dealt with by the Citizens Advice charity every working day during the year up to December 2011.
Kevin Mountford, financial expert, said: “When used responsibly, credit can be a good thing and is an effective way for families to manage their finances.”
He added: “By avoiding credit completely, many consumers are missing out on the added benefits that credit can bring, for example, rewards on offer from cashback credit cards, the ability to consolidate more expensive debt to a personal loan or 0% balance transfer card, or repair or create a good credit profile.”
It is important consumers who do use credit are fully aware of the terms and conditions associated with the financial product.
There are currently great rewards on credit cards, which makes it crucial that consumers research the different cards on the market.
Some cards offer borrowers the opportunity to earn money when they spend an certain amount each month, which can make using a credit card less expensive than one may have originally thought.
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