Report Suggests More Responsible Credit Card Use by Brits

Despite rising concerns about the level of consumer debt in the UK, much of which has been blamed on credit card spending, a new report has been released that indicates that Brits are using credit cards more sensibly these days, and that both the consumer and the retailer could benefit from this more responsible use of cards.

Information from the Morgan Stanley Card Index has shown that although there seems to be around a thirty five percent increase in the amount each average Brit will spend on his or her credit card this Christmas compared to what was spent last Christmas, the repayments that will be made on the cards will also be larger.

Morgan Stanley officials stated that this trend seemed to indicate that there is rising confidence when it comes to spending on credit cards. The Marketing Director for Morgan Stanley, Patrick Muir, stated: "This is a good sign for both consumers and retailers alike. People are increasingly comfortable with using their credit cards to buy everyday items such as groceries, as well as for larger purchases like their Christmas gifts."

In addition to this information, Apacs, which is the payments association in the UK, confirmed that their research and statistics showed the number of consumers that were making full repayments on the balance of their credit cards each month was also on the increase, further demonstrating the improvement in relation to spending and borrowing on credit cards in the UK. Research showed a three percent rise in consumers repaying their full balances between 2004 and 2005.

The Morgan Stanley Card Index also showed that the highest spenders on credit cards between October and Christmas are likely to be those aged over fifty, who are expected to clock up just short of fifteen hundred pounds on their cards over this period.

Alisdair Milton
8th November 2006

More Information:

• Tips For A Freeloader Credit Card User
  Before you panic, there was a time when a ‘freeloader’ UK credit card user was considered the perfect customer. Freeloader card users always pay their outstanding credit card debt in full on the statement payment date, never carrying a balance.
• Do You Need To Have More Than One Credit Card?
  Deciding whether or not to have more than 1 UK credit card can be a difficult decision to make. On the one hand, you want to keep a careful control on your personal finances and having numerous creditors makes this difficult. On the other hand, it can be convenient to have more than one credit card, for example in an emergency. So, should you have more than 1 credit card?
  

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