Credit card spending up 68 per cent
Published On 25 January 2007
Credit card spending will increase by 68 per cent in the first three months of 2007 compared to the same period last year, according to new figures.Research from Morgan Stanley predicted that credit card spending in 2007 will increase on last year's figures with Britons planning to spend an average of £1,228 on plastic in the first quarter of the year.
In comparison, the first three months of 2006 saw just £730 on credit card expenditure.
Much of this increased credit card spend is down to cardholders' increased comfort in using plastic for everyday spending – 59 per cent now use their card for essentials like groceries and petrol.
Patrick Muir, Morgan Stanley credit card spokesman, said: "The results of our research show an increased confidence in the use of credit cards as a financial aid. It is encouraging to see that people are using their credit cards sensibly, with credit card spending and repayment figures increasing in tandem.
"Cardholders are becoming increasingly clever when it comes to being rewarded for the purchases they make, and with a wide variety of reward schemes available, ranging from collecting points to cash back, spending on credit cards is fast becoming the most appealing way to pay when compared to other methods."
