- Wednesday, 20 January 2010IVA solutions may be needed by the millions of UK people reliant on credit cards to fund their daily living costs.
The annual Post Office Consumer Credit Report reveals that 38 per cent of adults intend to use their credit card in January for daily purchases such as grocery shopping, an increase of eight per cent from last year.
Some 2.6 million people expect they will have to spend more on their credit cards in January than they did the same time last year, and a further 3.3 million expect they will spend more on credit overall in 2010, according to the report.
Post Office head of lending Az Alibhai said the continued trend for people to rely on their credit cards for basic day-to-day purchases was a concern.
"Whilst the recession has left many with no choice, these debts build up quickly if not paid off in full each month, and can be extremely costly over time when interest is added," he said.
Insolvency trade body R3 has warned that store cards are contributing to the rising levels of personal debt in the UK, as vulnerable customers sign up to them without understanding the full consequences.
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