Subscribe to The Money StopNews Feed

Browse > Home / News, News-Credit-Cards / Credit card spending set to rise

Credit card spending set to rise

January 24, 2007 by admin  
Filed under News, News-Credit-Cards

Leave a Comment

The amount of money spent on credit cards is set to increase sharply in 2007, according to Morgan Stanley.

New research from the firm has led to predictions of a 68 per cent increase in credit card spending in the first three months of the year compared to the same period in 2006.

The Morgan Stanley Card Index shows that Brits intend to spend £1,228 on their cards during the first quarter of the year, a vast increase when compared to the £730 spent between January and March last year.

One reason for the rise is said to be increased comfort with spending on plastic, with consumers happy to buy everyday products such as groceries using their credit card.

Morgan Stanley’s research makes for positive reading, with repayment figures at the highest they have been since 1998, meaning consumers are using their cards sensibly.

“The results of our research show an increased confidence in the use of credit cards as a financial aid,” said Patrick Muir from Morgan Stanley.

“It is encouraging to see that people are using their credit cards sensibly, with credit card spending and repayment figures increasing in tandem.”

Mr Muir also pointed out that consumers appear to be becoming more skilled in using their credit cards to maximum personal gain.

“Cardholders are becoming increasingly clever when it comes to being rewarded for the purchases they make, and with a wide variety of reward schemes available, ranging from collecting points to cash back, spending on credit cards is fast becoming the most appealing way to pay when compared to other methods,” he added.

Tags:

Related Entries

  • Credit card spending hits record levels
    • British consumer spending on credit and debit cards hit record levels during the last quarter of 2006, reveals new research. Findings from the Association of Payment Clearing Service (APCS) showed that out of the total
  • Plastic card spending grows
    • The amount of money we spend on debit and credit cards has increased three-fold in the last ten years, reaching record levels.Figures from the UK payments association Apacs show that we spent a combined total
  • American Express encourages customers to spend more on cards
    • One major credit card provider has been encouraging its customers to spend more on their credit cards, according to a recent report. Despite the fact that there is a personal debt crisis in the UK
  • Blocked spending on credit cards problematic
    • Young travellers who take a parent's credit card with them on their travels are finding it blocked for appearing fraudulent, gapyear.com has said.Backpackers are often found to be spending abroad while their parents are simultaneously
  • Shoppers need to look around for best credit card deals
    • Consumers in the UK are being advised by industry experts to make sure that they shop around for the best credit card deals, as many credit card providers are now offering a range of perks
  • Store card customers to be penalised for being in credit
    • These days more and more people are wary of spending too much on credit, and this is why so many people have decided to cut back on spending on their credit and debit cards, which
  • Christmas spending goes on credit cards
    • The effects of the credit crunch failed to deter Christmas shoppers with a seasonal increase in the average outstanding balance recorded, according to new research. Findings from Moneyextra.com shows that many spenders put their festive
  • Organising your spending money when going abroad
    • When you are jetting off abroad there is a great deal to try and think about and organise – it can be easy to forget about something as simple yet important as sorting out your

Speak Your Mind

Tell us what you're thinking...
and oh, if you want a pic to show with your comment, go get a gravatar!