Do you use your plastic too much?

British people are the credit card kings of Europe, according to new figures.

The report by the Credit Card Research Group suggests that British people spend more money on their credit cards than anyone else in the European Union.

Our love of plastic has prompted warnings from debt counsellors. Since Christmas they've had double the level of inquiries from people in financial difficulty compared to the same period last year.

Are you living beyond your means? Have credit cards become the easy option?

My partner and I live together and neither of us have credit cards...I find this means less arguments about money and less stress about finance. When it comes down to it, what we have is what we have - STRESS FREE!!
Val Fryer, England

A credit card is a wonderful tool, particularly if used responsibly, as you can earn supermarket reward points etc. It is valuable also for consumer protection against suppliers going bankrupt, and is very handy for separating different categories of expenses for say business and personal use, on two cards.
Kai Chung, England

I would feel extremely vulnerable carrying cash in my purse when out shopping and I hate having to write out cheques which makes people annoyed when they're waiting in the queue behind me. On trips abroad I always use my credit card and there's no commission charge whereas if you exchange your cash in your local travel agency, bank, etc, you would end up being ripped off at their charges. I have always been careful when spending with credit cards and have always paid off every month without fail. Long live the credit cards!
AJ, UK

The problem is people's lack of financial awareness

Lewis Aldridge, England

Credit cards are a fantastic invention. They enable you to buy goods simply and on credit. If the extra enjoyment you gain from having the goods earlier is greater than the interest then it is worth "buying now and paying later". The credit cards are not the problem. The problem is people's lack of financial awareness. The most important thing to remember is that if you wouldn't be prepared to save up then don't buy it at all.
Lewis Aldridge, England

I have had my Amex card for 20 years and only one blip in all that time. It has to be paid every month. Those who offer credit, to people whose income at that time, is clearly inadequate to cater with total amount of credit being offered, should be made accountable under law as to why they gave credit to someone who was clearly unable to repay it.
Derek,ex-pat, Brazil

Having a credit card increases your consumer power and that's good in my books. My suggestion is that people set up a direct debit to pay off the FULL amount of debt EVERY month. The credit card thus becomes a convenient extension to the Switch card and debts are less likely to accrue. The direct debit can be cancelled when a large purchase needs to be made.
Richard N, UK

I have yet to even apply for a credit card

Ryan, USA

I have yet to even apply for a credit card. If I don't have the cash on hand, I simply don't buy. It's simply how much people are willing to discipline themselves. As a result, I am debt-free and proud of it.
Ryan, USA

Credit cards are like liquor, responsible people handle it and others get "drunk" on credit. Going through high school and college, not having drunk any alcohol or drugs makes me proud. Having $20K in dept makes me ashamed! It is not the bank's fault or the plastic's fault, it is the individual's! The only thing I cannot do without a credit card is rent a car. Debit cards, or as it sounds like in the UK (Switch), are much better.
G.B., USA

I agree with the earlier comments about EFTPOS/ Switch being really useful. It is preferable to using credit cards, because you're spending your own money not the bank's. What we need is some kind of international EFTPOS system which is accepted globally and on the Internet as readily as MasterCard or Visa, then a lot of us wouldn't fall into the trap of using credit cards.
Alex Bowyer, English, living in Australia

Margaret Burnett has pretty much hit the point. Not only does "society" value people based on possessions rather than persona, but the shallow masses judge people on what they have rather than what is paid for. I could buy a Ferrari and pose in it, if I were willing to trade envious glances from strangers for a crippling debt. Who are you trying to kid people?
Dave Tankard, UK

The greater problem is a society that values what you own rather than who you are

Margaret Burnett, Canada

Credit cards used responsibly are a wonderfully convenient thing. However, having worked in a bank for 13 years, I've seen that the majority don't pay their cards off every month. The greater problem is a society that values what you own rather than who you are. When you combine this with incessant marketing that encourages buy now, pay later for just about anything you have a recipe for disaster that affects a lot of people.
Margaret Burnett, Canada

I'm a Brit living in Canada and I can tell you that, until I came here, I had very little credit card debt. However, it is the North American culture that credit cards are used for almost everything and indeed, for every day goods, bank debit cards are also used rather than cash.

In order to survive in Vancouver where I am, everyone uses credit cards because salaries aren't high in most industries and, contrary to what a lot of people might think, it is cheaper to eat out but it isn't necessarily cheaper to buy average domestic groceries or goods. Add to that the fact that taxes are extraordinarily high - almost 50% for many ordinary people - that it's no wonder most are living pay cheque to pay cheque and using a credit card a little more often than they would really like. There are many wonderful reasons to live in this country but, poor money management aside, it could also be a question of bad economic strategy at government level that gives rise to individual consumer debt and salaries that don't keep up with the cost of living.
Karen, Canada

We can't always blame something else for our shortcomings. We have brains and we should think before we spend. Credit Cards should not be considered an extra source of income!
CK, US

If I can't raise the cash, then I can't afford it. I have not used plastic for 10 years, am not in debt, and am immune to credit card fraud.
P, UK

I think it must be difficult to live a modern life without one

Jenny, Scotland

I use mine sparingly and (hopefully) wisely! I think it must be difficult to live a modern life without one - concert tickets on the phone, books and holidays on the Internet - it also insures your purchases over a certain amount - where would we be without our "magic plastic"? Also, I know I used to use mine when I was a student, for big purchases, such as my winter coat each year, as I could pay half one month, and half the next - it did mean a bit of interest, but it also meant I kept warm a month earlier!
Jenny, Scotland

CHOICES! Why do we insist in blaming others for our woes?
John Dingwall, Scotland

My wallet is loaded with small change weighing down my pockets, totalling no more than a few pounds. My lovely Switch card weighs a few grammes and is worth considerable more!
Adam Pridmore, UK

I can see the cases where people would use plastic to pay an unexpected bill when they don't quite have the cash. I use my plastic extensively but always pay in full, and I must admit I get utterly sick of people falling over each other to offer me credit. Personally I think the people who spend on plastic to keep up with the Joneses deserve everything they get. Stop and think - perhaps the Joneses are struggling to keep up with you! The only people who win from this on-going fiasco are the credit firms who reap huge interest payments and your employers as you are forced to keep working to service your debts.
John B, UK

Credit card debt is a killer to be avoided at all costs.

Rob Shackleton, Japan

Japan is still very much a cash society which I find very refreshing. I now use my credit card only in emergencies. Credit card debt is a killer to be avoided at all costs.
Rob Shackleton, Japan

How to use a credit card? Pay it in full every month, so no interest. Only use it against the balance you have in your bank. Never think of it being flexible, it should be rigid as your bank account. Use it for emergency. I follow these and pay no interest. I am sure the credit card people don't like me that much for being sensible.
Anup,UK

No problem. I've got several credit cards plus store cards. It's free credit and they've never seen a penny interest from me as I always pay my debt off at the very end of the free credit period. Very nice.
Volker, England (ex Germany)

When travelling, credit cards are an absolute must, especially in North America. Try renting a car without one and you had better buy a bicycle, the same applies to hotels. If one uses plastic sensibly and pays the bill when due, they are convenient to say the least.
M.Frazer, Canada

The problem is that many people simply do not know the financial facts of life

Brian Blackmore, UK

The problem is that many people simply do not know the financial facts of life, and many schools and parents do not teach them. Those coming out of school should know how to budget, to manage income and expenditure, without having to run to mummy all the time. Most do not. Credit cards are a great financial tool, if you know how to use them.
Brian Blackmore, UK

Since getting into a debt spiral eight years ago, which eventually ended with the loss of my home, I've worked my way back up from a cashpoint card only to a current account again. I don't think I will ever have a credit card again - through personal choice - but it worries me that nearly every day I can't be the only one receiving a letter from one financial institution or another guaranteeing one of their credit cards. The letters go straight in the bin but some must be tempted. I'm sure, unfortunately, that we are going to see even more of the debt management agencies who seem to have suddenly sprung up advertising for new clients.
M. Rose, UK

Sometimes there are those little unexpected expenses e.g. the car breaks down or you have to urgently travel somewhere, and a credit card can be a useful tool to cushion the blow, providing you pay it off properly. A credit card helped me pay my insurance by spreading the cost over 3 wage packets. But if you ignore the statements and don't keep an eye on your debts you deserve everything.
Simon Jerram, England

Use credit cards for convenience not for credit
Renato Brandim, Brasil

Among my friends I am the only one that doesn't carry a balance each month. Most of my friends have about $1000 sitting on their credit cards at any one time. I believe that most economic habits are inherited. I've noticed that most of the young people I know who are in in this situation come from families, where their parents are heavily in debt. I find it amazing that there are some people in the world who have a fur coat, but yet can't afford to go and buy a carton of milk all because of debt.
Emma, USA

Using my credit card leaves me open to fraud and theft

Eoin Gibb, NZ/ UK

In New Zealand everyone uses EFTPOS (like Switch but available ANYWHERE). You use it at the corner shop, in hotels, stores - in short anywhere a credit card could be used and even more locations as well. As a consequence some stores no longer accept cash and no longer worry about the theft (of cash). Like Switch, EFTPOS use the available funds in your bank, rather than credit. Till I came to the UK I never needed a credit card, and never missed it. Using my credit card leaves me open to fraud and theft and also interest charges. How I miss EFTPOS!
Eoin Gibb, NZ/ UK

Credit cards just make life so easy. There's none of this writing out cheques rubbish. They're also great abroad. I pay mine off every month, but I can see how it would be easy to let it slip and allow a large debt to mount up. What I do find annoying is that the credit checking done by the card companies is very poor. I know this is going to stir a few people up, but I think that people should have a job before they are allowed a credit card.
John Boyer, England

Why do all the banks offer so many debt facilities to students (who can afford it the least)? It just gets them into bad habits which they may find very hard to escape from. Student finance practices need to be reformed. One of my friends graduated with 3 £1500 overdrafts, a £1000 credit card bill plus £4500 worth of student loans from the Government. And this was before student fees came in. He reckons he won't clear it until the end of 2003. The temptation is too much and banks can't fall over themselves fast enough to snare you even further into the trap.
Alex Banks, Wales

Most people in the USA have dug themselves into such a deep hole that getting out of debt is no longer an option. If at all possible say "NO" to credit cards. It is an endless situation once started.
Kevin, USA

The stupidity amongst borrowers is staggering

Roy Bingham, Bristol, UK

Of course credit companies throw money at consumers - that's what they're in business for. The stupidity amongst borrowers is staggering. Some almost seem to revel in their own reckless spending, until they realise that the goods they've bought actually have to be paid for somewhere down the line. Somehow, spending with plastic seems less consequential than handing over a wad of hard-earned cash. People have to get a grip!
Roy Bingham, Bristol, UK

Because we had NO credit card debt, my wife is able to retire this month at 58 years old. I retired last year at 50 years of age. Had we any credit card debt, retirement would have been impossible 'till we were in our sixties. Our "motto", if we can't pay cash, we don't really need it. For bigger items we just save for a few months. Also we use a Visa debit card for automobile rentals and the like.
Curt Knight, USA

One reason UK citizens use plastic is the Consumer Credit Act. If you buy something in the UK using plastic and it turns out to be defective, you can get your money back direct form the credit card issuer - which is why I buy "everything" on plastic. I pay the bill off every month so I don't get stung for those extortionate interest payments either. And I get up to six weeks' free credit! How bad could that be?
Guy Chapman, UK

My, what a saintly bunch we are, always paying off our balances in full. I don't clear my balance every month and I spend money I haven't got...YET. I'm not letting it get too out of hand, which is the important thing and I'm nowhere near the ludicrous credit limit my card company have given me. As soon as I've cleared my student loan, graduate loan and car finance (which was essential), I'll start whittling it down a bit.
DCT, UK

Don't be a slave to your money

G. Kaiser, South Africa

To all you weak beings out there, cut your credit card in two pieces and if you need a card, get a debit card. Don't be a slave to your money. If you haven't got the cash, then wait! Chances are that when you have the notes in your hand you don't need that item anyway!!
G. Kaiser, South Africa

Why do governments try to impose a single currency on nations, when plastic has already become the de facto international currency of choice?
Paul, UK

People who need cash pay interest - they have no choice. Banks are legal loan sharks cleaning up. And those who have a bad credit rating or no credit? Pity those suffering with no protection to speak of, paying sky-high interest. Why do the public take it when we could pool money and assets (just like the banks do) and lend money at low interest rates?
Abdulfez, Japan

I got into trouble with credit cards when I was 19. Six years later and they are all finally paid off. Now I don't have any credit cards (except one for business use) and I never want any again. I enjoy my money much more now as everything I bring home is for me and not to pay off credit card bills.
A much happier reformed credit card user, UK

The level of expenditure on credit cards is worrying

Nick Evans, UK

The level of expenditure on credit cards is worrying, particularly amongst those who can least afford it. The banks and stores are throwing money at consumers with no regard to the consequences. The fact that I receive indiscriminate offers through the post of gold and silver cards even though I know I do not earn enough money to actually have one is most worrying. Tempting people with huge amounts of credit who consequently do not have the ability to repay is irresponsible.
Nick Evans, UK

There are around a dozen plastic cards in my wallet and no money. I think that says it all.
Lee, UK

What plastic does for me is to allow me to leave the cash in the bank until I need it and not to much around with me. I recently spent a week in Bonn and had to make several trips to cash machines because I was not carrying enough cash.
Keith Lomax, UK

Don't go there!! I did and ended up with 5 credit cards and over £60,000 in debt. After taking legal advice, I am now in the 3rd year of a 4-year IVA - one step up from bankruptcy. Stick to what you can afford and stay away from the plastic!!
Tony Martin, UK

Credit is more and more easily available. This in itself would not be a problem if people better understood personal financial responsibility. Education is the answer to this. We need to be better educated as to when and how to borrow money. When did Home Economics at school really mean "Home Economics"?
Carl Pheasant, Italy

The plastic take-up in this country is encouraging for the 'new economy' (dare I use that word?) as most e-commerce requires plastic. That said, only the ignorant or those in denial neglect to clear the bill at the end of the month.
Paul, UK

I regard a credit card as a necessary evil!

John C, Warwick, England

I regard a credit card as a necessary evil! You need it to buy goods on the internet and I have to use it for things like hotel bills when travelling abroad. You either use your card when you check-in or they usually require a huge cash deposit. Use it wisely, pay it off as soon as possible and they are not too bad!
John C, Warwick, England

Credit cards have always been the easy option, I use mine all the time. I hardly pay for anything with cash or Switch anymore. I have to say though that I never buy anything on the credit card that I wouldn't buy with cash and I have never been unable to pay back the full monthly bill.
Hazel, UK

Credit cards are wonderful inventions. However I'm always careful to pay mine off at the end of the month - only losers pay interest. With some (American Express), you "have" to pay it all off monthly anyway. The best thing about credit cards is that they let you keep a detailed track of business expenses so you don't forget to reclaim the odd hundred quid here and there.
Pete Morgan-Lucas, Wiltshire, UK

For me credit cards are all about convenience. You can use them in most countries - try getting a business hotel booking without one! However I make sure that mine pays itself off every month from my bank account.
Jonathan Kelk, England