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Credit card spending 'set to fall'
Credit card spending is expected to fall this year as consumers opt to use their debit cards in a bid to keep their debt down, a report claimed.
The value of transactions carried out on credit cards is expected to ease by 1.1 per cent during 2008 to 120bn, while debit card spending will jump by 14 per cent to hit 438bn, according to market analyst Datamonitor.
The group said the change was being driven by people spending less on big ticket items, for which credit cards are typically used, as well as a reluctance to run up debt.
As a result nearly three-quarters of all card purchases made this year will be debit card ones, with credit cards used for only 20 per cent of transactions and charge cards making up the balance.
The report's author Andrew Fabricius said: "The fall in the value of credit card transactions reflects the fact that consumers are less confident about spending on credit and also are spending less on large items, such as white goods.
"Particularly with less people moving home, there has been less demand for goods such as household appliances and furnishings."
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Wednesday 23 May 2012
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