The Post Office has published its 5th annual Consumer Credit Report, which suggests that more than 12 million people will be using credit cards to pay for essential living costs this month.

This is a 2% increase from the January 2011 figures, and accounts for 36% of all credit card holders. The Post Office also found that 42% of people with credit cards plan to pay for groceries using plastic, whilst 38% expect to spend an extra £200.

10% of people relying on credit cards this month still have debts to pay off from Christmas, and 7% will be forced to pay utility bills using credit cards.

Additionally, 21% accepted they will need take better control of their finances this year if they intend to pay off their credit cards, and 6% expect their debts will leave them seriously overstretched.

Nevertheless, a third of respondents admitted planning to use credit cards to make purchases in the January sales, and nearly 25% will book a holiday on their card in an effort to beat the January blues.

If you are struggling to keep on top of credit cards and other payments, there are a number of debt management options available. Our advisors can talk you through the best solution based on your circumstances – get in touch to discuss the way forward.