Finance Choices
Credit card use increases
Britons are increasingly using credit cards as the preferred means to buy everyday items, according to a new survey.
Routine purchases now constitute half of total credit card spending and the frequency is expected to grow, with an increase of around ten per cent already noted during the past three months, according to Morgan Stanley.
And the gap between the value held on an average transaction on a credit card and that on a debit card has continued to narrow, with £65 and £41 respectively.
Morgan Stanley said consumers were using the two payment methods interchangeably.
Nearly four out of ten (38 per cent) credit card holders said they always used plastic to buy groceries.
A total of 45 per cent used credit cards for buying home and car expenses such as petrol.
Between the sexes, women are more likely to use their credit cards to pay for everyday items, while men are more likely to use them for luxuries, such as holidays, home entertainment and socialising.
Patrick Muir, marketing director of Morgan Stanley Consumer Banking, discerned the emergence of ?increasingly savvy shoppers? who benefited from finance deals that offer reward schemes such as cashback and 55 day interest-free periods.
Routine purchases now constitute half of total credit card spending and the frequency is expected to grow, with an increase of around ten per cent already noted during the past three months, according to Morgan Stanley.
And the gap between the value held on an average transaction on a credit card and that on a debit card has continued to narrow, with £65 and £41 respectively.
Morgan Stanley said consumers were using the two payment methods interchangeably.
Nearly four out of ten (38 per cent) credit card holders said they always used plastic to buy groceries.
A total of 45 per cent used credit cards for buying home and car expenses such as petrol.
Between the sexes, women are more likely to use their credit cards to pay for everyday items, while men are more likely to use them for luxuries, such as holidays, home entertainment and socialising.
Patrick Muir, marketing director of Morgan Stanley Consumer Banking, discerned the emergence of ?increasingly savvy shoppers? who benefited from finance deals that offer reward schemes such as cashback and 55 day interest-free periods.
posted by Bruce Wayne at 7:44 AM
Credit card use increases
2 Comments:
Credit is useful but equally very dangerous if not used wisely - I now owe in excess of £20,000, a problem I brought on myself, and am dealing with myself, but certainly not helped by being offered credit at every turn.
Greed is the only reason people get into debt. Neither a lender or borrower be!! If you cannot afford to buy something how the heck do you expect to be able to afford it and pay the interest?
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