Credit Cards Still A Popular Form Of Finance

During the recent financial crisis some of us have been using savings to help make ends meet. However, it seems there are still many people out there who are still using their credit cards for everyday living.

While the recession has pulled on consumers' purse-strings they have not learned their lesson when it comes to borrowing, according to one expert.

A national education charity dedicated to helping people manage their money effectively, made the claim and asserted that the recession has not lessened people's appetite for credit cards.

A director of the charity said the figures showed that consumers are still actively approaching credit card companies.

He explained: "I think it is probably the case that consumers are still reliant upon credit cards in just the same way they have been for a number of years."

"A lot of people are reliant upon being able to borrow on their credit cards to smooth out peaks and troughs in their income and in many unfortunate situations they rely on cards simply to buy essential living costs."

The director acknowledged that credit card companies have made it harder for consumers to obtain finance, but said this was not deterring applicants in need of funds.

He added: “I think it shows that we haven't seen the end of Britain's love affair with the credit card and a lot of people will be using existing lines of credit on credit cards and also seeking new ones."

The charity's comments follow the publication of statistics from the Bank of England, which revealed that lending to consumers increased by £0.7 billion recently.

According to the Bank, credit card lending has risen by £0.1 billion while other loans and advances fell by £0.3 billion.

Furthermore, the increase in credit card lending came in a period where lending in other forms fell by £0.3 billion, indicating the unique appeal of this form of borrowing.

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