Consumers 'turn to credit' for daily costs

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Consumers 'turn to credit' for daily costs

Thu 21st Jan 2010

Increasing numbers of shoppers are paying for their purchases with credit cards as they struggle to make ends meet, the Post Office has stated.

According to their research, 38 per cent of adults are using credit cards this month to fund shopping for their groceries, an eight per cent increase on the number doing the same last year.

It is also estimated that a further ten per cent will spend more on their money this year than in 2009, with three per cent of people planning to apply for another credit card to boost their credit limits.

Post Office head of lending Az Alibhai said: "While the recession has left many with no choice, these debts build up quickly if not paid off in full each month and can be extremely costly over time when interest is added."

For anyone looking to start putting some money aside in savings, the Post Office has launched a Growth bond, which offers a return of 4.4 per cent AER on a three-year bond.

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