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People will continue to use credit cards despite a more cautious approach to spending, a claim suggests, which could mean a debt consolidation loan is still required by many Brits.

Using a credit card remains a wise choice for people who do a lot of shopping online because if something goes wrong, a credit card can provide protection, according to Equifax.

But the recession means that shoppers may only use credit cards for certain things to avoid racking up debt.

Neil Munroe, external affairs director at Equifax, suggests people are saying: "I may use it for certain things but I am not going to use it as broadly as I used to and I will focus on keeping my debt position manageable in case things happen in the future."

Brits who have not kept their credit card balances manageable may find that a debt consolidation loan can group all plastic debt together into a more affordable monthly repayment.

The latest findings from APACs, the UK Payments Association, reveal that spending on credit cards did drop by three per cent in the first quarter of the year, which could reflect the more cautious approach to spending.

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