Online shopping increasing in popularity which may lead to credit card debt
Online shopping increasing in popularity which may lead to credit card debt
- Wednesday, 1 December 2010Online shopping has increased in popularity over the last three years as 5.9 million credit card users have started to make purchases using the web.
This could be risky as making the minimum repayments on a card may lead to
credit card debt.
However, one way in which
credit card debt could be avoided is by using a Sainsbury's Nectar credit card as customers receive one per cent cash back on all purchases.
This could be an option for the 1.2 million people who spend more than £1,000 on their credit cards online each month, new research from Sainsbury's Finance found.
It was also found that average amount spent online using a credit card is £192, while two-thirds spend less than £100.
Stuart McKeggie, head of cards at the firm, said: "The growth of online shopping in such a short time is staggering. Our research found that only seven per cent of credit card holders do not use their cards online."
Consumers were recently urged to cut back on their credit this Christmas if they do not want to risk having
debt problems at the start of the New Year by David Rodger, managing director of the
Debt Advice Foundation.

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