Millions to be reliant on credit in 2007 say Post Office

New research from the Post Office has shown that one in four of credit card holders will be starting the New Year more dependent on credit than in 2007.

Up to 41 per cent of consumers are expected to be reliant upon their credit cards for day to day living costs.

Gary Fitton, Post Office director of lending, said: “Typically January is the time of year when people struggle with their money the most.”

“Many people have over-stretched themselves over the Christmas period and have little choice but to use their credit card in the New Year,” he added.

The findings also revealed that half of card holders are intending to use their cards in the January sales while almost a third of respondents said they are expecting to make bigger purchases, such as holidays, using credit.

The Post Office is urging consumers to get their debts in control as up 53 per cent of card holders do not pay their card bills off in full each month.

Meanwhile, the Post Office has predicted that costs for holiday makers in Malta and Cyprus, the newest members of the Eurozone are set to increase next year.

Tags: cyprus, New, director, New Year, little choice, time of year, office director, period