Credit card debt to decline in 2004

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Credit card debt to decline in 2004

LONDON, UK - The results of a new survey suggest have given a clear indication that the UK's alarmingly high level of credit card debt is due to decline this year.

Consumers plans to reduce their spending on plastic from an average £819 in 2003 to £756 in 2004, according to the latest Morgan Stanley Card Index.

This is the lowest annual figure since Morgan Stanley began recording consumer data of this sort three years ago.

Economy watchers and the Government are becoming increasingly concerned about the levels of personal debt accumulated by British shoppers - which outstrips levels in the rest of Europe.

Particularly concerning is the accumulation of debt on credit cards, given persistent warnings about interest rates and the value for money they represent.

Late in 2003, Barclays chief executive Matt Barrett caused controversy when he admitted to a Committee of MPs that he does not borrow on credit cards because they are bad value.

The Index reports on the spending intentions of 2,000 people for the first three months of the year, and shows that women will spend an average £654 and men an average £849.

Consumers in their twenties will increase their spending, however, from £625 to £669.

Credit card users will also turn away from luxury items in the first three months of the year, with food shopping and petrol cited as the top items.

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