23 July 2008
As the cost of living continues to rise more consumers are turning to credit cards to make ends meet, new research shows. Data from Mintel reveals that gross credit card lending rose by seven per cent in the first four months of this year compared to the same period in 2007. It also confirms that the number of people who have emergency savings to fall back on has dropped from 43% in 2006 to just 29% this year. Toby Clark, a senior finance analyst at Mintel, said: "Rising food and fuel prices combined with higher interest rates means that people are now having to find quite a bit more money each month to maintain their standard of living." A rise in the number of people describing their financial circumstances as "pretty tight" was also recorded, from 25% two years ago to 39% now. Official figures show inflation to be running at 3.8%, with food and fuel costs driving up the cost of living. The next inflation report from the Bank of England is due on August 12th.