23 February 2009
New figures published this month show consumers are still reducing their use of credit cards in favour debit alternatives.
Payments association Apacs recorded only a slight increase in credit card spending last year compared with a 9% rise for debit cards.
In addition, the number of credit card holders and cards in issue both experienced declines, falling by more than 2% in 2008 compared with the year before.
It means the number of debit cards in circulation has now overtaken the number of credit cards.
The statistics are largely thought to reflect increased consumer caution as the recession starts to bite.
Lower credit cards limits imposed by banks coupled with higher interest rates on repayments could also be factors.
Apacs' figures follow a recent survey by Virgin Money, which found that two out of ten British consumers are not confident they can pay off their credit card debts this year.