Post Office Predicts Rise in UK Credit Card Usage in 2012

    LONDON, ENGLAND, January 26, 2012 /24-7PressRelease/ -- Nowadays we will hardly be able to find someone who hasn't heard of the term or used a 'credit card'. It has become a part of our lifestyle, a permanent part. It is a small electronic piece of plastic that is not only an option but has become a necessity. It is safe and convenient. It is practical and of course, portable.

As time passes by, the use of a credit card becomes even more advanced. It has been predicted that during the start of the year, many people (more than about 12 million) will switch to credit cards for the payments of not only huge transactions but also, day to day transactions.

The post office has based its predictions on several factors such as:
- more people putting in an increased amount of money for their credit cards
- a prominent increase in the credit cards issued by banks
- surveys which showed an increased number of credit card holders wanting to pay their domestic bills (including grocery shopping and festive shopping), holiday bills and other expenses through credit cards.

The main reason for this rise in the credit card usage is the possible recession that the economy is facing. More people are becoming dependent on the credit cards and wish to take as much debt as they can, without really focusing on the drawbacks of doing this.

Most people understand that when they pay for a product using a credit card, they usually quite often end up paying more than they would have if they paid in cash (due to the interest rates). Furthermore, it actually attracts a person to buy more and more even if they can't afford to pay off the debt later on. This makes sense, as possibly, If a person has money on them, they will probably buy just one pair of shoes from a Nike Store. But if they have a card on them, they might be attracted to buy two of them, not worrying about paying it back. Surveys have actually proved that in many cases, people are willing to spend more when it comes to using credit cards over cash. Plus, although credit cards are considered relatively safer to use than hard cash, it is important to check your credit card balance regularly to make sure there is no unusual activity.

However, even in this time, when the credit crunch has had a serious effect on the entire economy, many providers of credit cards have increased their allowance limit so that more people can buy on credit. This could give a competitive edge to the providers.

It is also noted that men carry relatively more credit cards than women do, without actually realizing the consequences this would have. While credit cards for some are certainly a blessing, it should be noted that they do also have drawbacks and their use should be restricted to a certain limit.

The Post Office are unique in reaching everyone in the UK through our mails, Post Office and parcels businesses. They are a key component of the UK's economic and social infrastructure, providing services to private individuals, companies and communities. Find out more about the Post Office Credit Card.

Website: http://www.insure-uk.com

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