UK’s credit card bill is second highest ever
Data from the Association of Payment Clearing Services (Apacs) reveal that the UK’s 31.5 million credit card holders spent £32.3 billion in the last three months of 2007 - the second-highest sum on record, beaten only by the final quarter of 2004, when cheap credit card deals were more readily available.
Although some of the increased spending on food in December can be attributed to higher prices, recent figures show that the cost of food and drink has risen by only about 6 per cent in the past year, raising fears that more households are relying on credit to fund essential spending.
Chris Tapp, of Credit Action, a debt charity, said: “As household budgets are squeezed, people may start to use their credit cards to pay for shopping. This is a warning sign. While some people will be taking advantage of special credit card deals to earn points or cash back, many others will be simply using their card to put off paying the bill.”