2 November 2007
Providers and retailers alike will see a downturn in credit card use this festive season, a new report indicated today.
Debt consultancy Thomas Charles polled nearly 2,000 adults ahead of what is traditionally the busiest time of year for shops - and found that around one quarter planned to avoid spending on their credit cards.
Moreover, 10% said that they would try not to make any large transactions on plastic for the next six months.
These findings were partially explained by a separate result of the poll, which showed that 15% held an unsecured debt from cards and loans of more than £10,000.
Managing Director of Thomas Charles James Falla commented: "Interest rate rises and subsequent mortgage hikes mean that people have been relying on credit for their everyday expenditure - credit they can often ill afford.
"These results show that Britons are finally making positive steps towards confronting the amount of debt they are carrying - this is good news for the man on the street, but may signify bad news for retailers who have come to rely upon the vast amounts of credit spent at Christmas time."
The total level of debt among Britons is currently estimated at around £1.5 trillion.