41% of credit card holders admit that they’re using these accounts for day to day purchases such as grocery shopping, and living a ‘hand to mouth’ exsistence. More than a quarter admitted to using their credit card significantly more often than this time last year.
Around 5% of people admitted they had either missed a council tax payment or paid it late, while 10% disclosed trouble with paying utility bills.
Additionally, research from financial website MoneySupermarket estimates that the bills of up to 6.9 million households were either paid late or left unpaid over the last six months.
A Post Office spokesman, Gary Fitton, described the trend as a new year financial hangover:
“Many people have over-stretched themselves over the Christmas period and have little choice but to use their credit card in the New Year."
Consumer finances are to come under heavy strain this year due to rising energy prices and increased difficulty in obtaining credit.
Chris Eagle, Commercial Manager at CreditChoices, calls for consumer pragmatism and strategic spending:
"Using your credit card for everyday purchases is a useful short term strategy but could lead to long term difficulties, unless you can clear the balance at the end of each month. Your first priority should be to pay council tax and energy bills. Ask your bank if you’re eligible for an overdraft or overdraft extension this January to cover the Christmas spending. The small price that this may cost you could save you hundreds in bank charges and interest on credit card purchases."
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