Credit cards ''can still be a useful financial tool''

While credit cards sometimes attract bad press, they do offer consumers a "flexible and user-friendly way" to manage their finances, an industry expert has said.

Donald MacLeod, head of cards at Sainsbury''s Credit Cards, said that the credit crunch would not completely damped consumers'' desire to spend money.

He added that credit cards still provided a sensible way to people to manage the finances, as long as they did not allow their debt to get out of control.

"A credit card is, despite press comment to the contrary, an incredibly flexible and user-friendly way of managing your finances.

"In terms of spending responsibly, if you''re looking to buy something for £1,000 – a piece of furniture…or a couple of white goods – this weekend…the card gives you the flexibility of making that purchase…and paying it off when you get paid."

Figures from the British Bankers Association (BBA) showed that consumers spent £7.5 billion on credit cards in May, £200 million more than during the previous month.

"People spent more on credit cards, but repayment levels were lower than expected in May," BBA statistics director David Dooks explained.