Millions of people more reliant on credit in the new year than in 2007

7 months ago 11th Jan 09:35

Post Office® urges borrowers to make sure they get the best value credit card deal

New research from the Post Office® reveals that one in four1 credit card holders will be starting the New Year more dependent on credit than in 2007, with 41 per cent intending to rely on their credit card for day to day living costs such as grocery shopping.

The Post Office® is advising anyone relying on credit to ensure they get the best possible deal so they don’t end up over-paying for money borrowed on credit cards.

The research also revealed that half of card holders said they intend to use their credit card in the January sales and almost a third (28 per cent) said they plan to make bigger purchases, such as holidays, on their cards.

With a huge 53 per cent of people not paying their credit card off in full each month, the Post Office® is urging borrowers to use the New Year as an opportunity to check all aspects of their finances – particularly the rate they are paying on their credit card.

Post Office® director of lending Gary Fitton said: “Typically January is the time of year when people struggle with their money the most. Many people have over-stretched themselves over the Christmas period and have little choice but to use their credit card in the New Year.

“But with some credit and store cards charging as much as 29.9% APR - it’s crucial to find the right deal. Borrowers would be much better off opting for a credit card which offers factors such as zero per cent on purchases or balance transfers allowing them time to pay off their debt in full without being charged extortionate rates for the interest incurred.”

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