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Credit card spending set to rise

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

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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.

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