Credit crunch results in rise in credit card use

Whilst spending on credit cards is often a very expensive way of getting finance due to high interest rates, a recent report has shown that the level of credit card use in the UK has rocketed over recent months, with many consumers finding themselves reliant upon credit to keep on top of their financial commitments at what has become a very difficult time.

Stretched finances due to rising living costs, increased bills, and high mortgage repayments have resulted in an increase in the number of people using their credit cards.

It is thought that some people are using their cards to fund their day to day costs as well as to make payments on bills and even mortgages when finances are over-stretched.

Over recent months many costs have gone up for households. Although the base rate has come down borrowing is still very expensive, and tight credit conditions have made it very difficult for consumers to find a cheaper deal.

On top of this there have been a number of rises in living costs and bills, including water, energy costs, petrol, and food, all of which is impacting on household finances.

Consumers that do have to use a credit card are urged to look into the most affordable option, such as a 0% purchase credit card.