Credit and debit cards 'used more frequently'
Written by bmlengel on February 1st, 2010
There has been an increase in the use of debit and credit cards, third-quarter statistics reveal.
More people may have been spending on their credit cards balance during the last quarter if new figures are anything to go by.
According to figures released by the Payments Council, the amount of purchases made with plastic rose throughout the 3 months.
Figures obtained from UK Cards Association, Link, Bacs, Cheque and Credit Clearing Company and Chaps have shown that there have been no major changes in the use of debit and credit cards despite the recession.
According to the Payments Council, this form of payment – which could have been used with a 0% purchases credit card term – rose throughout the period.
There was infact a 6.9% hike in card usage, in addition to the value of purchases made, which also increased by 4.3 percent.
Although credit card spending by value fell by 0.7%, the number of sales increased by 2.5%.
Furthermore, gross lending on this form of plastic – including products with a 0% balance transfer – was 7.5% lower than the previous 3 months.
Commenting on the findings, Sandra Quinn, director of communications for the Payments Council, said they reflect stability in the use of plastic, despite the reports of some commentators that suggest people turn to their credit cards in tough economic circumstances.
"These statistics confirm what has been a trend for a couple of years," she commented.
"Spending on credit cards has remained relatively unchanged and interestingly we are still repaying proportionately more of our debt than we were three years ago," Ms Quinn added.
The emerging popularity of paying off debts has been prompted by the low interest rate set by the Bank of England, according to Adrian Coles, director general of BSA.
He spoke to the Telegraph, noting the lack of an incentive to save when the base rate stands at 0.5 per cent.
As a result, there has been a decline in the savings balances in UK accounts, Mr Coles said.
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