Increasing numbers of Brits could be taking control of their finances with the use of disciplined
credit card spending.
New research from the Post Office has indicated over 12 million Brits will be making use of this financial solution in the first month of 2012.
This is the equivalent of 36 per cent of credit card holders nationwide and it was noted the bulk of this will be covering essential spending such as energy bill costs.
Furthermore, it was specified 42 per cent of respondents will be using plastic to cover their general food shopping requirements.
However, the next most popular usage cited was hitting the January sales, with 32 per cent of UK adults stating this is their intention.
Nearly a quarter - 22 per cent - said they will book a holiday and ten per cent will be paying off outstanding debts from the Christmas period.
Kevin Mountford, head of banking at price comparison site MoneySupermarket.com, may welcome this trend, as he recently advised individuals do not spend beyond their means over the festive season.
He recommended credit card users set out a sensible budget plan to finish making repayments as soon as possible.
"Anyone using a credit or store card to fund the festivities should think ahead on how they plan to pay off the debt," the expert remarked.
Research from his organisation indicated an average Christmas spending spree of £437 could cost an additional £70.20 if people take a year to pay off this debt.
Head of credit cards at the Post Office Az Alibhai asserted it is essential Brits bear in mind the importance of keeping up with repayments.
"There are still too many people who aren't thinking of the consequences," he commented, adding: "With many people expecting to use their credit card more in January, we urge cardholders to check out their interest charges."
Posted by Martin Peacock
