In the tough economic climate, with budgets being squeezed considerably, it is hardly surprising that just over one in ten people have had to rely on credit this year.
Research from MoneySupermarket found that 12% of people surveyed have turned to credit as a means of making it through the month this year, while just over a quarter (26%) of people who have used credit this year have needed it more than they have done previously.
Kevin Mountford, head of banking at MoneySupermarket, said: “With the continued pressure on household finances, it is no surprise consumers are less able to save and resort to credit to tide them over for their day to day spending.”
Some 54% of Brits make purchases with their credit card, but the research revealed that one in five (21%) dip into their authorised overdraft.
A whopping 46% of people need their credit cards for everyday expenses. Some 64% of people also use credit cards for online shopping, while 50% use it for holidays and travel.
Mr Mountford commented: “When used responsibly, credit is a good thing and a useful tool for families to manage their money.”
“Consumers need to understand all the terms and conditions that come with credit products and make sure they have the means to repay the debt in a timely manner,” he added.
With the amount of credit which Brits are collectively sitting on clocking in at £260 billion, this is certainly good advice.
The research showed that the typical Brit has two credit cards with an average credit allowance of almost £7,500. However, 22% have three or more credit cards with an average of £12,049 at their disposal.
Youngsters tend to have less available credit than those aged 35-54, with an average of £4,637.84 compared to £8,292.77 respectively.
Mr Mountford warned those who rely on a credit card to cover daily expenditure that it is “essential” to use the right credit card.
It is always worth taking the time to scout out the best credit card deals for your circumstances from a reliable online company.
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