January and 'the debt trap'

According to the Post Office Consumer Credit Report, 38% of people with a credit card intend to spend up to £200 on it this January. They're not all 'hitting the sales' though - many need their credit card for normal day-to-day items like groceries.

The survey of 2,000 UK credit card holders equates to a national figure of over 12 million people relying on their credit card for everyday items. Some 42% of people need their credit card to buy food and one in ten to pay their domestic bills.

The survey was carried out at the same time last year and indicates a 2% increase in the number of people relying on their credit cards this January. While this isn't a significant increase, it does indicate personal finances haven't improved for many consumers since this time last year.

A spokesperson for debt management company Gregory Pennington commented: "Consumers risk falling into a 'debt trap' as credit card debts can take many years to repay - particularly if the balance is not repaid in full every month. Consumers also need to be aware of the interest they're being charged based on how quickly they are able to repay their debt.

"Relying on a credit card to pay for essentials, like the grocery shop and domestic bills, can indicate an underlying debt problem - particularly if this pattern of behaviour continues over a sustained period of time. A debt expert can offer guidance if you have any concerns about your current level of debt."

Lucy Bower