September 5, 2008
Increase in credit card reliance in the UK
Money-transfer firm PayPal has carried out research which suggests that British consumers are using their credit cards to cover the costs of everyday living despite the current credit crunch. The research also revealed that the current economic situation has forced nearly 80% of British people to set a monthly budget.
Additionally, nearly 16 million people still managed to go over their budget by around £120 and one fifth of these have had to turn to their credit cards to help them out. PayPal said that many consumers are no longer spending significant amounts of their budget on items such as clothing and engaging in social activities.
A spokesman for the company stated that many British people still say that they are attempting to stick to their budgets. However, the reality is that many individuals and/or families are having to use their credit cards to get them out of tight financial situations.