Shoppers used their credit cards to buy £2 billion of food and drink last December, up 25% on the same month in 2006.

Data from the Association of Payment Clearing Services (Apacs) shows that the UK's 31.5 million credit card holders spent £32.3 billion during October, November and December 2007.

Food and drink prices have risen by around 6% in the past year showing that more and more households are relying on credit to fund essential spending. With household budgets beginning to be squeezed, it is possible that people are using their credit cards to pay for shopping. Some people will be taking advantage of special credit card deals but many others may be using their cards to delay paying their bills.

Many people have been worrying about their debts since mid-January, when the Christmas credit card bills began to arrive, with total credit card debt increasing by £300 million last year to £56.1 billion in December.

http://business.timesonline.co.uk/tol/business/economics/article3372183.ece

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