A third `pay for everything on credit cards`

Nearly a third of UK consumers use their credit cards for everyday spending, preferring them over debit cards and cash, new research has revealed.

While 19 per cent of Brits use cards and cash interchangeably, 32 per cent consistently use credit cards to pay for everyday goods, despite the level of interest rates attached to them, a study by Fool found.

Meanwhile, in a bid to avoid debt management schemes, 37 per cent of consumers use debit cards to pay for goods, while a third carry no more than £10 on them at all times, preferring plastic over coins.

David Kuo, head of personal finance at Fool, said: "Plastic can be fantastic, but relying on money we can`t see is a reflection of how easy it has been to rely on credit in recent years.

"But since you are not paying in cash, it is all the more reason to take care as credit becomes more difficult to obtain."

According to Credit Action, the average UK consumer owed £4,748 in credit card bills and overdrafts at the end of January.