The people of Britain have a collective £260 billion of available credit according to the results of new research published by comparison website MoneySupermarket.
Their survey highlighted that the average Briton has two credit cards with an allowance near to £7500. However, just over one in five have three or more credit cards, and available credit of over £12000.
Kevin Mountford, head of banking at MoneySupermarket said: “When used responsibly, credit is a good thing and a useful tool for families to manage their money. However, with the continued pressure on household finances, it is no surprise consumers are less able to save and resort to credit to tide them over for their day to day spending. Consumers need to understand all the terms and conditions that come with credit products and make sure they have the means to repay the debt in a timely manner. For those who rely on a credit card to pay for day to day expenditure, as well as the big ticket items, it’s essential you use the right card for your needs.
“For purchases, using a product like the Tesco Clubcard credit card which offers zero per cent purchases for 16 months, could be a good option to help manage the repayments without incurring interest. If you are able to pay off the full balance each month then using a cashback and reward cards is a no brainer, as you can benefit from a broad range of incentives on offer, including air miles and loyalty club points. If you don’t pay off your balance in full then the interest charges will outweigh any cashback benefit, making it pointless having this type of card.”