With budgets tight after the festive season, over a third of credit card holders have admitted they will be relying on their cards in order to survive the month.
More than 2,000 people took part in the Post Office’s nationwide research, which found that 35% of credit card users plan to use their plastic to cover the cost of daily expenses.
This equates to a whopping 12 million people who will be dependent on their credit cards this September.
With food price hikes already affecting supermarkets and more in the pipeline, it comes as no surprise that credit card users will predominantly be putting their grocery shopping on their plastic.
Four in ten credit card holders said they would be covering the cost of food using their credit cards, while 7% plan to do the same with fuel bills.
The price of energy has witnessed price hikes across the board, with all of the big six energy providers adding significant increases to a typical dual fuel bill.
And in light of consumer group Which? finding that nearly half of Brits (46%) covered the cost of Christmas with credit – including credit cards, overdrafts, store cards and payday loans – around 8% of those surveyed said they would be using their cards this January to help repay debts accumulated over the festive period.
John Willcock, head of credit cards at Post Office, said: “While many people intend to manage their credit card purchases and repayments sensibly, there are still too many people who are not thinking of the consequences of their festive spending.
He added that it was “surprising” that so many people will be forced to rely on their credit cards this month to cover the cost of daily essentials.
If you are hoping to clear your Christmas debts this month, balance transfer credit cards can be a good option when used responsibly.
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