Finance Choices
UK Credit Card Spending to Fall
Britons are planning to engage in a little plastic surgery, and cut credit card spending in the next three months to shed their festive pounds.
The latest figures from the Morgan Stanley credit card index show that UK residents expect to spend £645 on their plastic in the coming months, 31 per cent less than the £940 they thought they would spend in the last three months of 2005.
While a fall in the first three months of the year is expected when compared with the festive period, the amount set to be spent is also 11 per cent lower than for the same period last year.
The biggest reduction in spending is set to come on luxury purchases, while spending on everyday items and essentials remains relatively stable.
"Following recent reports of a prudent festive period, our index shows that we can also expect to see a drop in credit card spending over the next three months, particularly on luxury purchases," said Patrick Muir, marketing director for the Morgan Stanley Credit Card.
"Spending on everyday items remains steady, with grocery shopping being the top category for credit card spending."
Morgan Stanley shows that spending on clothes, shoes, hair and beauty is predicted to fall from £73 per person last year to £57 this year.
Spending on socialising shows the biggest fall, down by more than £100 from £177 in the last three months of 2005 to £76 from January to March 2006.
Men still spend more on their cards than women, at £817 compared with £469. Those in their 20s are set to spend the least in the next three months at £557 while those in their 30s are set to spend the most at an average of £719 per person.
To find a cheap credit card go to www.financechoices.co.uk/credit-card-best-buys.html
The latest figures from the Morgan Stanley credit card index show that UK residents expect to spend £645 on their plastic in the coming months, 31 per cent less than the £940 they thought they would spend in the last three months of 2005.
While a fall in the first three months of the year is expected when compared with the festive period, the amount set to be spent is also 11 per cent lower than for the same period last year.
The biggest reduction in spending is set to come on luxury purchases, while spending on everyday items and essentials remains relatively stable.
"Following recent reports of a prudent festive period, our index shows that we can also expect to see a drop in credit card spending over the next three months, particularly on luxury purchases," said Patrick Muir, marketing director for the Morgan Stanley Credit Card.
"Spending on everyday items remains steady, with grocery shopping being the top category for credit card spending."
Morgan Stanley shows that spending on clothes, shoes, hair and beauty is predicted to fall from £73 per person last year to £57 this year.
Spending on socialising shows the biggest fall, down by more than £100 from £177 in the last three months of 2005 to £76 from January to March 2006.
Men still spend more on their cards than women, at £817 compared with £469. Those in their 20s are set to spend the least in the next three months at £557 while those in their 30s are set to spend the most at an average of £719 per person.
To find a cheap credit card go to www.financechoices.co.uk/credit-card-best-buys.html
posted by Barbara Gordon at 10:17 AM
UK Credit Card Spending to Fall
7 Comments:
i hope to spend nothing on my credit cards this year. I occasionally use them because we don't like carrying alot of cash but have found that to be a trap so we are going to use our debit card instead.
Credit Card will be paid off this year and not used barring major catastrophy.
I intend to keep using my credit cards. I pay them off every month. I have a budget attached to them. They give me a cash rebate. I don't carry cash because it goes much too easily with no real record of where it went. I don't like to write checks because it is a hassle and checks cost money. I use my online bill pay and my discover card. I know there is that thing about people spending 17% more if they use credit cards, but if you set up a strict budget and stick to it this shouln't be a problem.
You betcha! I'll be out of credit card debt come November, 2006 or sooner. I don't want to say I've turned into Mrs. Scrooge, but being a radical giver in the past has taught me a hard lesson about not being able to rid myself of debt. I have learned a two letter word when it comes to family, friends and retailers; "NO"!!!
I have a balance on one which I am working on paying off. I have not charged anything on it. I do have a credit card which I use regularly for the for the cashback incentive. I also have one for rewards and I haven't figured out which one is best yet. However, right after using it, I come home and make a payment( for the full amount charged) right away. This way I still get my benefits from the card.
So, I will be spending more on my cc but will not be carrying any more of a balance. That will be decreasing.
Yes our borrowing will be down greatly I had some major expenses in 2005 . We had to buy some new furniture it was unavoidable the table and bed and couch were bought used 10 years ago and had finally all fell apart this year I mean really fell apart!!!
And we went out of town a few times one time for a week due to our little girls eyes and had to rent a hotel and spend money on food that whole time. Anytime we use credit card's though we only do 0%. But I hate to even do that.
And my son graduated in December so we were paying for some of his schooling expenses that his work wasn't covering so we wont have those expenses this year thank goodness!!!
I hope not to borrow for anything this year. I pay off my credit card every month. The only thing we might borrow for, is to buy another piece of property. It takes so much cash to built a house, I don't know if I will have enough cash for building a big house and buying an expensive lot.
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