More consumers relying on credit, expert says

Increasing numbers of UK consumers are relying on credit cards as opposed to debit cards to purchase goods and services, it has been claimed.

According to Donald MacLeod, head of Sainsbury’s credit cards, the rise in the popularity of online shopping is partly responsible, as are the offers being put forward by lenders.

He said: "We are seeing customers migrating their spending from debit to credit card. So from where we have traditionally seen a steady move away from credit card to debit card spend, we have seen that shift back."

Mr MacLeod added that people are also finding themselves more stretched in terms of their personal finances, which means they are using short-term borrowing tools to manage their household finances.

Indeed, research conducted recently by Abbey Credit Cards found that one in five consumers questioned prior to Christmas planned to fund their celebrations entirely on plastic, potentially putting themselves at risk of credit card debt.