A recent report has highlighted how personal debt issues could increase over the coming months as a result of increased credit card spending. Figures have been released based on the Barclaycard Spending Index, and show that the amount spent on credit cards in August of this year was 9.2 percent higher than the same month a year earlier.

Credit card spending has now increased for four months in a row according to figures, and as Christmas approaches this is set to increase further, with many consumers having already resigned themselves to the fact that they only way in which they will be able to afford to pay for Christmas will be by getting their purchases and paying for outings on credit.

One industry official, John Fairhurst from Payplan, said that the increased level of spending on the High Street was a positive sign for the economy as a whole. However, he said that he was concerned that consumers were getting ahead of themselves, and that people needed to be more realistic about their finances.

He said that there were concerns that people may forget about financial responsibility and use their credit cards more and more as Christmas approached, which would make the debt problem even worse once the festive season was over and credit card bills started to go out to borrowers.

Mr Fairhurst said: “We would be the last to pour cold water on a high street spending recovery but as a responsible advisor, we warn people to be realistic about their finances, the wider economy, and the possible impact this may have in the coming months.” He also added: “We give the same free advice as the Citizens Advice Bureau and National Debtline – use credit cards wisely when there is money in the account to cover the spend.”

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