A new report on credit card spending has suggested that people are borrowing and managing spending levels “sensibly”.
According to the Morgan Stanley Card Index, the average Briton will make £1,270 worth of purchases this Christmas, which is a 35 per cent increase from last year’s total.
Patrick Muir, Morgan Stanley Credit Card’s marketing director, said that the rise in spending coupled with increased repayments displays “an increase in confidence” for credit card spending.
“This is a good sign for both consumers and retailers alike.
“People are increasingly comfortable with using their credit cards to buy everyday items such as groceries, as well as for larger purchases like their Christmas gifts.”
The research found that between October and December, the highest-spending group is expected to be the over 50s, who will use their credit cards for £1,528 worth of goods.
Socialising will take up £194 of credit, while purchases for the home and car are the highest for average card spending at £344.
In October, Apacs – the UK payments association – discovered that the number of people repaying their credit card balance at the end of the month was increasing.
Some 59 per cent of borrowers paid back their outstanding balance per month in 2005, compared to 56 per cent in 2004.
This article: © Moneyexpert Ltd.