Debit cards 'more popular than credit cards' at Christmas
13/11/2006
Debit cards are being used more frequently than credit cards in the run-up to Christmas, new research reveals.
Spending on debit cards is predicted to increase by £3.4 billion to £20.4 billion in December, while credit card expenditure is predicted to hit £11.4 billion, according to payments association Apacs.
The trend changes online however, with Apacs predicting that credit cards will make up 67 per cent of the total £3 billion spent on plastic via the internet in December.
Sandra Quinn, director of communications at Apacs, says: "Overall our penchant for plastic continues and it looks as though this Christmas our plastic cards will continue to replace cash and cheques for our festive purchases.
"Over recent months we have seen that cardholders are becoming more responsible in the way that they borrow, reining in their spending and focusing on repayments."
However, the majority of spending will be done on debit cards rather than credit cards over the Christmas period, Ms Quinn states.
This week, the Association of British Credit Unions has called on the UK's borrowers to use personal loans rather than credit cards, calling credit cards "a dangerous tool in the wrong hands".
Spending on debit cards is predicted to increase by £3.4 billion to £20.4 billion in December, while credit card expenditure is predicted to hit £11.4 billion, according to payments association Apacs.
The trend changes online however, with Apacs predicting that credit cards will make up 67 per cent of the total £3 billion spent on plastic via the internet in December.
Sandra Quinn, director of communications at Apacs, says: "Overall our penchant for plastic continues and it looks as though this Christmas our plastic cards will continue to replace cash and cheques for our festive purchases.
"Over recent months we have seen that cardholders are becoming more responsible in the way that they borrow, reining in their spending and focusing on repayments."
However, the majority of spending will be done on debit cards rather than credit cards over the Christmas period, Ms Quinn states.
This week, the Association of British Credit Unions has called on the UK's borrowers to use personal loans rather than credit cards, calling credit cards "a dangerous tool in the wrong hands".
