Excessive credit card spending can lead to debt

Wed, 11 Jan 2012

Spending excessively on credit cards could result in people facing debt difficulties at a later stage.

Annie Shaw, editor of CashQuestions.com, has noted purchasing with plastic can be a useful way to budget when used properly - but has its pitfalls when not.

The industry expert explained problems arise when shoppers fail to view their credit card as a budgeting or consumer protection tool and begin using it on a regular basis.

Overspending via this method can result in significant debts being built up, coupled with the prospect of mounting interest.

Ms Shaw stated: "It becomes very worrying if people are using it because they actually don't have enough money and they are then not paying off that bill every month."

She added credit cards therefore carry the risk of becoming a very expensive way to borrow - and one that is likely to catch up with them before long.

Her comments come after the latest Post Office Consumer Credit Report revealed more than one-third of those who spend on plastic rely on the payment option in order to fund everyday purchases.
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