'Millions of consumers' reliant on credit

Posted by Emily Jones

Millions of people in the UK are reliant on credit cards to fund their lifestyles, it has been suggested.

Research conducted by the Post Office found that more than 2.6 million consumers intend to spend more on plastic in January this year than they did during the same month in 2009.

In addition, a fifth of those polled revealed they believe it will take them over a year to pay off old debts accrued last year.

Az Alibhai, head of lending at the Post Office - which is a wholly owned subsidiary of Royal Mail Group - said it is "understandable" that people want to use credit to fund more expensive purchases.

However, he added: "These debts build up quickly if not paid off in full each month and can be extremely costly over time when interest is added."

Meanwhile, those who have to use credit should shop around for the best deals available, the expert advised.
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21/01/2010 17:04

News category: Consumer

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