People 'use credit cards for major purchases'
Published On 22 April 2007
People are increasingly using their credit cards to purchase major items, like furniture, a leading provider has revealed.According to Halifax, UK consumers spent a total of £13.5 billion on new items for their homes in 2005 - compared to £7.3 billion in 1995.
However, the lender warned that people could be paying too much for these items as they are buying them on credit cards that do not feature zero per cent offers.
"When it comes to furnishings, we all love filling our homes with creature comforts but this shouldn't leave you with empty pockets or paying high interest for months afterwards," said Ken Stannard, head of Halifax Credit Cards.
Mr Stannard added that cards with zero per cent rates would allow consumers to make large scale purchases and then not have to pay interest for a set amount of time.
"The Halifax One card charges zero per cent on both balance transfers and new purchases so whether you have an existing balance to move, or have a future furnishing spend in mind, you won't accrue any interest for the first nine months," he explained.
Figures from Apacs, the UK's payment association, showed that total credit card spending in the UK fell in 2006, from £122 billion in 2005 to £120 billion.
