Credit card spending set to rise

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Credit card spending set to rise

Wed 24th Jan 2007

Spending on credit cards is set to rise in the UK during the first three months of this year, new research undertaken by Morgan Stanley has discovered.

The total increase is forecasted to be 68 per cent above the corresponding period for last year which will equate to an average card spend of £1,228 for the first quarter of 2007.

It has also been found that repayment figures at present represent the highest amount since 1998. Reasons for the increase have been attributed to the ease in which cardholders can flash the plastic when paying for essentials such as groceries and petrol.

Patrick Muir, marketing director of the Morgan Stanley Credit Card, remarked: "The results of our research show an increased confidence in the use of credit cards as a financial aid. It is encouraging to see that people are using their credit cards sensibly, with credit card spending and repayment figures increasing in tandem."

Key areas that credit cards are set to be used for in the first three months of 2007 include spending on the home and car (£377), groceries (£341) and holidays and travel which are predicted to account for £285.

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