Credit card debt declining as consumers use debit cards instead
Credit card debt declining as consumers use debit cards instead
- Thursday, 9 September 2010The amount of money that consumers are spending on their credit cards has declined, which means they are less likely to get into
debt problems.
According to the Payments Council, credit card repayments rose by seven per cent in the second quarter of 2010 compared to the same period last year, averaging 99 per cent of debt being paid.
Consumers also seemed wary of borrowing too much money as the amount spent on credit cards matched the sum repaid.
Therefore,
credit card debt could decline as consumers appear to be repaying the money borrowed as soon as possible.
Spending on debit cards increased by 12 per cent in the same period while cheque usage dropped by ten per cent as businesses seem to be keener on faster methods of payment.
Sandra Quinn, director of communications at the council, said: "Cheque usage is shrinking dramatically, while credit cards hold less appeal for consumers and businesses."
Sainsbury's recently unveiled its Gold Credit Card, which charges no fees for balance transfers or for purchases made abroad.

Recent Debt Management Plan News
56% of Brits have no life insurance which could leave family with debt problems
Wed, 04 May 2011More than half of UK adults currently have no life insurance cover, which could mean their loved ones are left with
debt problems when they die...
Brits thinking about retirement advised to seek debt advice
Tue, 03 May 2011Consumers considering their retirement options have been advised to seek professional advice, as they may end up with
debt problems in the future...
Brits planning to attend a wedding should start saving to avoid debt problems
Thu, 28 Apr 2011Consumers concerned about getting into
credit card debt to pay to attend a wedding may want to use their savings instead...
Couples planning their big day can avoid debt problems by negotiating a cheap wedding
Wed, 27 Apr 2011Couples-to-be worried about needing
debt advice in the future after paying for a wedding can ensure they avoid accruing
debt problems by negotiating a cheap wedding...