Consumers are relying on their credit cards, says expert
People are falling back on their credit cards rather than using other financial products, according to the head of personal finance at fool.co.uk.
Consumers are relying on their credit cards, says expert”
Personal finance expert David Kuo said that credit card debt is rising while overdrafts appear to be reducing because people still have credit cards and need the cash whereas they could be turned down for a loan.
He advised consumers to look at their personal finances and try to live below their means to pay off debt.
Mr Kuo said: "If people do look after their finances, live below their means and start paying off their debts, then at least, if they have the money aside, they will be much better prepared."
His advice comes as the British Bankers' Association release figures indicating that credit card lending has risen by £300 million, while personal loans and overdraft debts have decreased over the past year.
The data has led to suggestions that consumers are moving their debts to low interest credit cards.
According to figures released by Apacs last month, spending on credit cards increased by two per cent to £126.2 billion last year.
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