More people are using cash to pay for their purchases amid growing consumer concerns about how much money they are spending, the British Retail Consortium (BRC) has claimed.
The global credit crunch is causing consumers to be more cautious with their money, says BRC spokesperson Richard Dodd.
New figures from the organisation show that cash is now used for 60 per cent of all transactions, an increase of 54 per cent from 2007.
Cash now represents 34 per cent of all money spent in the retail sector, compared with 32 per cent a year ago.
Recent research from uSwitch shows that on average, credit card holders owe £1,812.
With ten per cent of all cardholders paying the minimum on their cards, the company estimates 3.5 million people will spend close to the next 30 years clearing their credit cards.
“People’s enthusiasm for using cards is slipping. That’s because people are not only reluctant to borrow, they are also reluctant to use cards,” concluded Mr Dodd.
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