Cashpoint

Spending on credit cards shot up 7.6% in August compared to last year, according to banking industry trade association UK Finance.

While it says this reflects a boost to sales from the warm weather, it could also suggest people are spending beyond their means or using credit more because they are skint.

Outstanding balances on cards rose from £43.5million to £44.3m year on year.

Credit cards can be a good way to budget and offer a security net when buying highprice items. But they only work if used wisely.

Don’t end up in the minimum payment trap. If you cannot afford to clear your balance in full each month pay the most you can afford – the typical 3% card issuers ask for will leave you in debt for years and paying extortionate amounts in interest. Try and avoid using plastic for basic bills.

If you’re struggling with debt, get help from your local Citizens Advice office or call the National Debtline on 0808 808 4000.