Relying on credit cards is said to be one of the reasons why so many families are swimming in credit card debt.

This is according to Moneysupermarket.com, which revealed that a third of UK consumers have increased their unsecured arrears in the last 12 months, driving up the typical amount an individual owed to £8,430 -excluding mortgages.

These findings follow the latest Aviva Family Finances Report, which found that the average household’s debt is now £5,878, rising by around £500 in the space of four months.

Although using plastic to pay for the everyday cost of living is convenient for some people, the price comparison site has warned that this is not necessarily the best solution for families with no disposable income, because for many, failing to clear these debts in good time can result in mounting charges.

Four per cent of people who rely on credit cards told Moneysupermarket.com that they only settle the minimum charge each month to free up some of their personal finances, while a tenth of consumers say they can only afford to make the smallest possible repayments.

Furthermore, the rates of plastic credit has skyrocketed to its highest level in 13 years, even though the Bank of England base rate has been at 0.5 per cent for more than two years, making is more vital than ever before to clear outstanding debts.

Tim Moss, head of loans and debt at the website, said: “Consumers need to remember that by only repaying the bare minimum each month, they will end up paying through the nose in the long term and will shell out considerably more in interest than the original amount borrowed.”

And the price comparison site also noted this week that a third of UK consumers have seen their personal debt rise over the past year, with seven per cent of people believing they will owe money for the rest of their lives.

By Paul Thacker

A third of UK consumers have claimed their personal debt has risen within the last 12 months, with many believing they will always have arrears hanging over their heads.

This is according to a new study from Moneysupermarket.com, which revealed that ten per cent of people have said the amount they owe has jumped significantly.

Furthermore, the average amount of personal debt an individual is under – excluding mortgages – is currently £8,430, which would take the average credit card owner 24 years and four months to pay off with an average 18.43 per cent rate and £7,488 in interest added on.

The findings also revealed that those aged between 18 and 34 were the worst hit, with 37 per cent of this age bracket claiming their debts have increased in the last 12 months, which is 35 per cent more than those in their parents’ bracket age 55 and over.

Worryingly, seven per cent of respondents believe that owing money would be something they will have to live with for the duration of their lives.

Tim Moss, head of loans and debt at Moneysupermarket.com said: “There is no need for consumers to bury their heads in the sand when it comes to their finances and by taking steps to reduce personal debt, many of these problems can be nipped in the bud early on, before they escalate out of control.”

This follows a study by Aviva, which found that debt repayments now account for ten per cent of the average UK family’s income, rising from just eight per cent in January of this year.

By Amy White