How do credit cards work?

Credit cards are one of the most popular ways to borrow money in the UK. In fact, currently, there are more than 59 million credit cards in circulation around the country. On average, we have 1.7 credit cards each and together we spend more than £21 billion on them every month.  

Used wisely, credit cards can be a handy tool for managing money, spreading the cost of purchases, and even earning rewards. But they can also lead to debt if you’re not careful, so it’s important to understand how they work.