29 October 2008
Spending on credit cards is expected to fall this year as cash-strapped consumers make fewer big ticket purchases. According to a report by Datamonitor, credit card spending will decline by 1.1% from levels seen in 2003. At the same time, debit card spending will rise 14%. Andrew Fabricius, author of the report, said the reduction in credit card spending will be driven by falling demand for white goods and other large items. "Particularly with less people moving home, there has been less demand for goods such as household appliances and furnishings, which typically might be purchased with a credit card," he explained. However, he said that credit cards will remain popular with online shoppers because of the protection they offer compared to debit cards. Meanwhile, some 22% of consumers who have not saved prior to Christmas plan to put their festive spending on their credit cards, according to a survey by Norwich and Peterborough Building Society.
© 2008 Adfero Ltd
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