Credit cards used to 'get out of trouble'
02 September 2008
Up to 20 per cent of Britons use their credit cards to "take them out of trouble" each month according to a report.
Money High Street reports that 15.9 million Brits regularly go over the monthly budget they set themselves, by up to £123, according to figures from PayPal.
According to the report 78 per cent of consumers say they set themselves a budget each month.
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Carl Scheilbe, Managing Director at PayPal UK, said: "Setting a budget and then sticking to it are two very different things."
He said that it was "concerning" that some people were sticking to their budgets but only with the help of credit cards for living costs and that it was "dangerous territory" to have credit card bills and no savings to fall back on.
Figures from moneysupermarket.com reported on Finance Markets in November last year claimed that the number of credit card rejections was up 17 per cent when compared with the six months to March 2007.
