As part of their听credit card statistics听report, the financial experts at听money.co.uk听investigated the听spending habits of UK credit card holders听to reveal how Brits are changing their spending habits to cope with the increased cost of living.
New research found that 1 in 4 Brits said that the cost of living is the main reason they use their credit cards, as they don’t have enough money in their current account to cover monthly expenses.听
Over a third of credit card holders aged between听25-34听reported this as their main reason for credit card use. They鈥檙e followed by those between听35-44听years old听and听those aged听45-54.
When broken down per region, cardholders in听Northern Ireland听feel the need to spread the cost of living the most –听37%听of Northern Irish reported this as their main reason for credit card use. This is followed by the听East Midlands, with a third 听of respondents stating this, and听Greater London听where over听1 in 4听 reported cost of living as their main credit card use.
Greater London is in the most credit card debt
Owing approximately听拢3,846听per card holder, the听credit card stats听report can reveal that card users in听Greater London听are in the most credit card debt. This is听拢236 more than cardholders in听Yorkshire and the Humber听who place second owing听拢3,610 on average, and听拢275听more than听East of England听who place third听(拢3,571). Credit card debt in听Greater London听is also听a fifth听greater than the UK鈥檚 national average of听拢3,213听per card holder.
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Scottish听cardholders currently owe the least in credit at approximately听拢2,229听per user. This is听拢1,617听less听than Greater London听and听30%听below the UK鈥檚 national average听(拢3,213). The听South East听owe the second least at听拢2,750听per card holder听(14% below average), followed by the听West Midlands听at听拢2,695听(7% below average).
Brits aged 18-24 are in 15% less debt than those aged 35-44
Despite owing 15% less to their card providers than those aged听35-44,听18-24-year-olds听pay听65% more off their credit cards each month in comparison. However,听almost a fifth听of听18-24-year-olds听have had to ask for their credit limit to be increased, compared to听16.50%听of听35-44-year-olds.
Salman Haqqi,听personal finance expert听at听money.co.uk, advises on听how to use credit cards wisely during the cost of living crisis:
鈥�Credit cards can offer a flexible and convenient way to borrow and spread the cost of day-to-day spending, so knowing how to manage your credit card can help you get the most out of it and save money.
The key to making the most of a credit card is only borrowing what you can afford to repay. To avoid increasing debt, always pay your credit card bill on time. Missing a credit card payment can be expensive, as you鈥檒l likely incur late fees. A missed payment can damage your credit score too, making it more difficult and costly to borrow in the future.鈥�
Most importantly, check your credit card balance regularly. Monitoring how much you have spent is key so that you never borrow more than you can afford. Most credit card providers now offer a smartphone app where you can seamlessly check your balance and make payments.鈥�
