Credit card spending 'on the up'
01/08/2006
Britain's summer credit card spending is expected to be 35 per cent higher than at the same time last year, according to the Morgan Stanley Card Index.
Between July and September 2006, increased spending on large and small items will boost credit card bills, the index suggests.
Foreign holidays and travel expenses are set to account for £331 of the average Briton's credit card spending, which is £110 more than the same period last year.
Home improvement and car finance will take up the second highest proportion of card spending, with men putting their money towards 'functional' items such as DIY equipment.
In fact, men and women are estimating different levels of credit card spending; the latter expect to spend £1,296, whereas the former believe they will use £976 during the three-month period.
"The increase in spending levels year-on-year demonstrates the rise in comfort levels in buying both big ticket and everyday purchases on credit cards," said Morgan Stanley's Patrick Muir.
"Shoppers are also becoming increasingly savvy when it comes to being rewarded for the purchases they make and with a raft of schemes available, from high-street discounts to cashback, spending on credit cards is becoming more appealing than debit cards," he added.
Halifax Credit Cards reported last week that much of the nation's money was going towards barbeque and garden equipment as the UK enjoyed the hot weather.
Between July and September 2006, increased spending on large and small items will boost credit card bills, the index suggests.
Foreign holidays and travel expenses are set to account for £331 of the average Briton's credit card spending, which is £110 more than the same period last year.
Home improvement and car finance will take up the second highest proportion of card spending, with men putting their money towards 'functional' items such as DIY equipment.
In fact, men and women are estimating different levels of credit card spending; the latter expect to spend £1,296, whereas the former believe they will use £976 during the three-month period.
"The increase in spending levels year-on-year demonstrates the rise in comfort levels in buying both big ticket and everyday purchases on credit cards," said Morgan Stanley's Patrick Muir.
"Shoppers are also becoming increasingly savvy when it comes to being rewarded for the purchases they make and with a raft of schemes available, from high-street discounts to cashback, spending on credit cards is becoming more appealing than debit cards," he added.
Halifax Credit Cards reported last week that much of the nation's money was going towards barbeque and garden equipment as the UK enjoyed the hot weather.
