News- 2007 shows an increase in credit card spending
London, 31st January, 2007: A new study reports that credit card spending is on the upswing. There is to be a 68 percent raise (as compared to last year) in the first three months of the New Year. That takes the tally to an average of £1,228 plastic money per person within the first quarter of the New Year.
This boost can be attributed to the increasing comfort level card holder's are experiencing with regards to its usage. 59 percent of credit card expenditure is put against everyday expenses, such as groceries and petrol. New areas of credit spending will be home and car maintenance (£377). With most cardholders booking in for early 2007 breaks, holiday and travel are the other new areas of expenses. Brits are also expected to spend around £100 on entertainment.
With a variety of reward schemes available, such as cash backs and point collection, credit cards have become a convenient way to pay. But the high interest rates that accompany the credit purchases deter it from becoming an effective financial tool