Britons set to splash out on credit cards
Wednesday, 26 April 2006 12:00
UK residents are set to double the amount of money they spend on their credit cards in the next three months, with holidays and DIY top of the list.
Figures from the Morgan Stanley credit card index show that the amount of money the average Briton is set to spend over the next 12 weeks is £1,225 - compared with the £645 spent over the last three months.
The increase in spending is driven by an increase in the amount of money people are planning to spend on their homes and cars - up from £152 to £363 - and holidays, up to £331.
"After the lull in spending in the new year, we are now seeing a rise in spending on DIY and holidays as we hit the bank holiday season," said Patrick Muir, marketing director for the Morgan Stanley credit card.
People are also planning to use their credit card to buy more of life's simpler things, with spending on groceries up from £177 to £315.
"Britons are increasingly using their credit cards to pay for everyday items, including groceries, petrol and bills," Mr Muir noted.
"One reason for this is that monthly statements help people keep track of exactly where their money is going.
"These results show that across the board, people are comfortable using their credit cards for all types of purchases, often making the most of cashback schemes and being rewarded for the things that they buy anyway."
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