New research by a price comparison website has found that a quarter of people are being forced to rely on credit cards to cover daily expenses.
On average it takes 21 days after payday for the credit card holder to start using the plastic.
For one in ten of this group it takes only 15 days from payday to start relying on credit to get them through to the next payday.
“It’s no surprise to see so many people reliant on credit so early in the month. However, unless you plan this properly and know you’re able to pay off your balance, this can be a dangerous trap to fall into,î said Kevin Mountford, at Moneysupermarket.
ìA card offering an interest free period on purchases is a good solution, especially for larger items, but if you are using a card to tide you over until the end of the month, still try and pay it off when you get paid”
Around 11 million people use credit cards as a back up during these tough financial times and a shocking 35 % of people admit to using credit cards for ëeveryday itemsí including expenses such as petrol and food.
Those using them for larger expenses make up 32% of people using credit cards.
Many are turning to credit now more than ever in order to cover the cost of everyday living. Credit cards are fast becoming a popular safety net for people to survive until the next payday.
They could make a better alternative to an unauthorised overdraft; however an authorised overdraft will allow you some leeway with your funds. You must arrange this overdraft with your bank before going in the red.