Pay freezes 'leading people to opt for credit cards'

Wage freezes are forcing some people to take on credit card debt, new figures suggest.

Research published by uSwitch.com has shown that a pay rise is not being anticipated in 2010 by 57 per cent of those workers polled in a recent survey.

The firm suggests that 12 per cent of people are having to look towards other sources of finance to make up for pay deficiencies, with credit cards and overdrafts proving popular.

Director of consumer policy at the website Ann Robinson believes that consumers should be careful if they are getting into debt.

"Short-term debt solutions may seem an efficient way to fund spending, but they can lead to severe long-term debt issues if not managed properly," she commented.

In another development that might hit the morale of the country's workforce, uSwitch.com also recently highlighted the risks that employers may run if they reduce their spending on smaller staff benefits.

Posted by Tom Burroughs.