A new report by the Post Office has revealed that more than one third of credit card users are relying on their cards to cover their day-to-day living costs over the first month of 2011.
Around 34% of survey respondents stated that they have had to use their credit card to cover daily expenses to see them though until payday at the end of January.
In addition to this, a tenth of the people surveyed stated that they had to use their credit card to help make ends meet as their was such a long period between December and January paydays. However, at least 11% of respondents blamed it on the fact that they had spent too much over the seasonal period.
In spite of this, the most worrying news, was that 33% of credit card holders actually used them on a month-by-month basis to cover the payday gap.
The head of credit cards at the Post Office, commented:
“January has been a tight month for many of us, especially with the long wait until payday, and we can see that many people are falling back on credit cards to ease the costs of day-to-day living.”
Mr Alibhai added however, that as long as the debts are managed in a sensible fashion and paid off regularly and quickly, credit cards can prove very effective. He did go on to warn:
“However, if you don’t pay off the bill in full, it can be a pricey way to fund daily purchases.”
As an alternative way of plugging the gap until payday you could consider taking out a payday loan which could prove more effective as a short-term solution.