Credit Cards Used To Cover Basic Living Costs

A recent report from the Post Office has revealed that 11.5 million people used credit cards to cover daily living costs in January.

A recent report from the Post Office has revealed that 11.5 million people used credit cards to cover daily living costs in January.

The Post Office Consumer Credit Report also revealed that 43% of credit card holders used their cards for grocery shopping.  David Rodger Managing Director of the Debt Advice Foundation said “If credit cards are being used to meet basic needs, it indicates that there is a serious underlying liquidity issue.  Anyone that finds themselves using credit cards to pay for essential items needs to seek advice from a reputable organisation immediately”.

Av Alibhai, head of credit cards at the Post office said, “January has been a tight month for many of us, especially with the long wait until pay day, and we can see that many people are falling back on credit cards to ease the costs of day-to-day living. If the debt is managed sensibly and paid off quickly, this can be very effective. However, if you don't pay off the bill in full, it can be a pricey way to fund daily purchases.”

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