Two-thirds of £53bn Yuletide spree on plastic

Christmas shoppers expect to spend £53 billion this Christmas – a rise of 4.2 per cent on last year.

However, credit card use is expected to fall.

Some 64.3 per cent of the festive splurge will be on credit and debit cards, according to new figures from payments association Apacs.

However, the research also reveals Brits are planning to use their credit cards proportionally less this year – with credit spending growing by £300 million, while total spending is up £2.2 billion.

Debit card spending is forecast to be up 14.3 per cent to £22.4 billion.

However, credit cards are coming into their own online – with shoppers logging on to escape the festive crowds increasing credit card use 55.6 per cent to around £1 billion a week.

“Whether buying the turkey or stocking fillers, we’re most likely to be using our debit card to pay for them this Christmas, continuing the ongoing trend of pulling out the debit card in preference to our credit cards, cash or cheques," said Sandra Quinn, director of communications at Apacs.

"The one exception is online where we are much more likely to use our credit cards - which makes sense because of the extra consumer protection they provide.”

The Apacs research also shows, as plastic gains in popularity, cheque and cash use this Christmas will fall by 4.2 per cent.