Credit cards helping to bridge the gap - Credit cards - News - Moneyfacts

News News brings you the latest financial & economic news & reviews of the best products in the UK by our team of money experts.

Credit cards helping to bridge the gap

Credit cards helping to bridge the gap

Category: Credit cards

Updated: 29/04/2013
First Published: 29/04/2013

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

A large number of UK households are struggling to make their monthly salary last and are regularly turning to their credit cards to help make ends meet, a new survey has found.

Almost half (42%) of people stated that they had used their credit card to tide them over financially until payday, overspending on their card every month by an average of £180.

Cardholders in the UK are believed to hold an average debt each of £1,600.

Increasingly high living costs, as average incomes stay relatively static, are thought to be the main reason for so many people running out of cash each month.

Despite 90% of people claiming they had adopted a more frugal approach to their money, a large number are choosing not to live within their financial means.

Around a quarter admitted they had left themselves short each month due to non-essential overspending.

Andy Oldham, managing director at the cashback website Quidco, which conducted the study, said: "Britons are undoubtedly still feeling the pinch when it comes to money management, as the financial climate fails to improve."

What next?

Compare credit cards with 0% purchase rates
Compare 0% on balance transfers
What is a Minimum Payment on a credit card?

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

Credit card mistakes cost borrowers £948m

At this time of year, many people could be turning to balance transfer credit cards in an attempt to overcome their Christmas debt. However, many of these borrowers could get caught out in the year ahead, and they could end up paying for it.

6 of the best balance transfer credit cards

Does the thought of opening your credit card bills fill you with fear? If so, you're not alone! Christmas may be over, but unfortunately, many people will still be paying for it, after turning to credit to cover the cost of their festive spend.

Get a better credit score for the New Year

A new year means a fresh start, and one of the best things you can do is take a cold, hard look at your finances – particularly when it comes to your credit score.