Brits 'reducing their reliance upon credit cards'

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Brits 'reducing their reliance upon credit cards'

Wed 24th Jun 2009

Credit card holders in the UK are attempting to beat their balances down amid the recession, new figures show.

New research from TescoCompare.com found that nearly half of the UK's credit card customers are restricting their credit card spending to around £100 a month - the equivalent of £1,100 a year.

The research also found that consumers have reduced their average credit card balance to £2,333.

Reasons cited include attempting to reduce levels of debt (37 per cent), to increase savings (25 per cent) and to break the cycle of relying upon credit (18 per cent).

Spokesperson for Tescocompare.com Debra Williams stated that it is "encouraging" to see people try to take steps to reduce their debt.

"Even those who aren't currently in a position to make cutbacks could still save themselves some cash by shopping around for a better deal," she added.

Last month, statistics from APACS, the UK's trade association for payments, revealed that debit, rather than credit cards, accounted for 74.5 per cent of all purchases during the first quarter of 2009.

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