A new debt infographic from Equifax looks at how UK consumers are using credit, drawing on the latest YouGov research.

The survey found that 15 per cent of UK adults have missed a payment on a credit card or short term loan at some point.

Almost a third (32 per cent) of UK adults with a credit card admit that, in a typical month, they don’t pay off their credit cards debts in full, with over half (52 per cent) of these saying it’s because they can’t afford the full monthly balance.

Household debt has been on the increase over the past few years, fuelled by squeezed wages and rising inflation. Last year alone the total credit card debt of households across the UK stood at £70 billon by November – equating to an average debt of £2574.00 per household.

Whilst using credit can be useful for various reasons, there is a tipping point where the borrowing can turn into unmanageable debt. If someone can no longer afford to repay their debt they may have to opt for an Individual Voluntary Arrangement (IVA) or even declare themselves bankrupt.

Lisa Hardstaff, consumer credit expert at Equifax, said: “According to our YouGov research, 40% use credit cards for day-to-day spending, which isn’t strictly a ‘good’ or ‘bad’ thing. But 13% of respondents have gone into their overdraft limit without approval from the lender, which could mean incurring extra charges and fees. Our infographic aims to help consumers see the different kinds of debt and recognise the risks, whilst outlining steps they can take to regain control of their finances.

“Not all debt is bad. If it’s managed properly and paid off, loans and credit cards can help people make plans and deal with unexpected events and emergencies. However, it’s vital that people understand the basics of budgeting, otherwise borrowing can spiral out of control. The first step to budgeting is understanding what’s coming in in terms of wages, benefits and other income. Individuals also need to take stock of their outgoings, including bills, pensions, loans and daily purchases, such as coffee or clothes. By subtracting their total spending from their total income, individuals will be able to see if there’s a shortfall and make positive changes.”