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As the cost of living soars, the number of Brits relying on credit cards continues to increase. Findings from a leading price comparison website revealed that 26% of Brits expect to owe money throughout 2012. Nearly one in ten confessed they are relying on credit to make ends meet. The cost of high inflation and pay freezes mean that the nation is left with little to cover daily expenses. The research showed that rising prices in household bills was the biggest concern for Brits over the next 12 months. One in four people want to find ways to save cash on their outgoings and 35% would like to get out of debt and reduce their loans. "The rising cost of living is placing a strain on many families and credit cards are being used to temporarily ease the pain,” said Gocompare.com's Jeremy Crye. “If used carefully, plastic cards can be a useful budgeting tool, but when used to plug a gap in everyday spending, card debt can quickly spiral out of control.” Almost half of Brits plan on cutting back on food to reduce their debt.
A further 31% of people claim they can reduce their spending on petrol and transport costs, and 28% plan on reducing their usage on mobiles, the internet and TV to cut costs. If you are concerned about your spending, at least it’s not on the same scale as the government’s problems in this area! It has recently been announced that UK public debt has passed the 1 trillion mark for the first time, despite a fall in borrowing during December. Whilst they have also tried to cut back on spending, it seems that they can’t get out of the red. If you feel overwhelmed by debt it is important not to panic, there are solutions. Compare debt management programs with Money Expert.
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