Consumers warned over using credit for household expenditure

Posted 2008-05-14

A debt charity has warned people not to become too dependent on credit to cover the cost of bills or other household necessities.

Credit Action director Chris Tapp said that the use of borrowed funds such as loans or credit cards makes sense in the short-term but continued use could see people fall into unmanageable levels of debt.

He used examples such as utility bills and food as areas where people may need extra funds to cover the rising costs, but urged caution in doing so.

"It may be a reasonable option in the short-term, but people have to be very careful they dont find themselves overly reliant on credit which is unsustainable in the long run and can lead to people getting in real difficulty," he said.

Credit Action was established in 1994 and aims to help people manage their finances better, through a combination of advice and training.

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