Recession ‘leaving Britons more reliant on cards’

Britons are more likely to use their credit cards this month than in January 2009 as a result of the recession, new research has indicated.

A study by the Post Office found that 2.6 million UK cardholders intend to spend more money via this type of payment.

The predicted increase in use included 38 per cent saying they will use this method of payment for regular grocery shopping, eight per cent more than last year.

Furthermore, 3.3 million cardholders will use them to spend more money over the course of the whole year than in 2009.

Head of lending at the Post Office Az Alibhai said it was “understandable” that many use credit to get through the first month of the year after heavy Christmas spending.

However, he added: “The continued trend for people to rely on their cards for basic day-day purchases is a concern.”

Earlier this month, director of finance charity Credit Action Chris Tapp said there was no evidence that the “lesson of the credit crunch” – that borrowing too much has severe consequences – has been learned by UK consumers.

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