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Millions using credit to make ends meet

Millions using credit to make ends meet

Category: Debt

Updated: 12/09/2012
First Published: 12/09/2012

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 It is now over 6 months old so the content may be out of date.

As the cost of living rises a worrying number of people are turning to credit cards, overdrafts and even payday loans to cope with paying off their monthly bills.

Nearly 14 million people in the UK are using credit to pay household bills, with an estimated £3.6 billion being borrowed every month.

According to the research by Santander, 17% of consumers favour their overdraft to pay their monthly bills, borrowing an average of £264 per household.

Samantha Owens, finance expert at Moneyfacts, said: Consumers should start looking for help when short-term borrowing is used for long-term problems.

"Whilst loans and credit cards are useful in bridging a gap such as an unexpected bill, which can be paid back over the longer term, looking to pay regular bills this way is the beginning of a vicious circle and these debts can soon escalate."

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