Skipton Building Society

The findings emerged in a report based on feedback from 4,105 people which details exactly how cardholders used their credit cards over the past 12 months.

 

The biggest spends during 2011 were on food and petrol, with Brits racking up just under five thousand pounds worth of debt, and using their card a total of 48 times, to purchase such items during the course of the year.

 

The findings demonstrate how people

are now turning to their credit cards to cope with essential lifestyle costs – such as bills, rent, car and medical expenses and transport.

 

But not everyone relied on their flexible friend for essentials alone – the report indicates that once a month people also stocked up on booze, or took trips to the coffee shop, spending a grand total of £491.76 in the process.

 

And jet setting Brits thought nothing of whacking £1,392.26 of holiday expenses on the credit card – for some this was the only way they could afford their annual break.

 

Folk have even resorted to using their credit cards 14 times across the last year to afford nights out with friends and family – totting up £761.08.

 

Tracy Fletcher, Head of Corporate Communications at Skipton Building Society,said: "Credit cards can be useful if managed correctly but this research indicates how easy it is for people to get into the habit of using their cards to pay for things they want, living beyond their means in order to get things now rather than saving up for them instead.

 

"Owning a credit card makes it really easy to spend money, and just as easy to lose track of what’s been bought on it.

 

“People must not forget that any items bought on the card have to be paid for eventually. So, while it might seem like a quick fix in the short term, it can prove to be a nightmare later on.

 

"If people get into the habit of using their credit card only for emergency situations or planned, one off purchases, and save up for all other eventualities instead, they will find they soon seize greater control over their personal finances."

 

But not all purchases made during 2011 were avoidable.  The research shows that when hit with an unexpected bill some people had no choice but to put it on the plastic.

 

Car expenses such as replacing parts and dealing with breakdowns incurred costs of £703.41 over the last 12 months.

 

While unforeseen medical expenses meant a further 10 uses of the card as people paid up to £418.17 in dental fees, healthcare and medicines for the family.

 

Even getting to work proved too costly for some people, who resorted to paying for public transport at least once a month, spending £512.01 over the entire year.

 

Some of the more frivolous purchases included £874.44 spent on clothes, over 16 individual occasions, and £526.83 on shoes, across 12 shopping trips.

 

Even presents for friends and family meant people handed over their credit cards 17 times during 2011, spending £1,304.17.

 

The report indicates a quarter of British adults have been relying on their credit cards for everyday living, and many have thought nothing of using the card to pay for items such as food, petrol and car repairs.

 

Going into 2012, the average person reckons they have £2,271.50 outstanding on their credit card, but nearly half of those polled aren’t worried by this figure.

 

But the reliance on credit cards is growing – with a third of respondents admitting they used them more in 2011 than any other year so far.

 

Tracy added:“This research shows that, for many people, their credit card is increasingly becoming a far too convenient mobile loan for them. Instead of planning ahead for purchases or spending just a little time working out budgets, people are making more and more everyday purchases on their plastic.

 

“But with the convenience of instant credit, comes a crippling interest rate if you don’t meet repayments. People can’t make their credit card debt disappear, but they can make a start on bringing it – and other areas of their  budgeting and spending – under control. And a new year is an ideal time to make that change.”