The number of people relying heavily on credit cards this month has increased in comparison to January 2011.
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The latest findings from the Post Office have revealed that the nation is currently gripped in a credit frenzy.
The added pressures of piling Christmas debt combined with mounting winter bills and tempting January sales have forced many to rely on plastic over the next four weeks.
The annual Post Office Consumer Credit Report found that over 12 million people will spend the first month of the year relying on their credit card just to pay for everyday essentials. This marks a 2% increase on last year’s figures as the high cost of living clearly shows that it is taking its toll on the nation.
Cash-strapped Brits are not only using borrowed money to cover the cost of living but they also have increased the amount they are borrowing. The report found that 38% of people are increasing their credit card spending by up to £200 in January 2012.
Many are using their credit cards to pay for credit card debts acquired over the festive period. Almost one in ten say they need to use their credit card this month to pay for domestic bills.
Despite this, a third of people confess that they really will use their card to fund January sales shopping. Almost a quarter of people are trying to beat the January blues by booking a holiday on their credit card.
“Whilst it is good to see so many people intending to manage their credit card purchases and repayments sensibly, there are still too many people who aren’t thinking of the consequences.” Az Alibhal from the Post Office, expressed his concerns.
“People with debts spread across different cards may benefit from consolidating their debts on to one card to make them easier to manage and to further reduce the amount of interest being paid.”
One way of doing so would be by taking out a long term 0% balance transfer credit card.