Debit card usage increases - Credit cards - News | moneyfacts.co.uk

News

Moneyfacts.co.uk News brings you the latest financial & economic news & reviews of the best products in the UK by our team of money experts.

Debit card usage increases

Debit card usage increases

Category: Credit cards

Updated: 15/05/2009
First Published: 15/05/2009

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

New figures from the UK Payments Association have shed some light on the way British consumers are purchasing goods and paying off debts in the midst of a recession.

Spending on plastic increased by over five per cent in the first quarter of 2009 compared with January to March 2008, reaching a total of £94.2 billion.

The actual number of purchases also rose over the same time by 6.5 per cent.

Debit card payments grew by four per cent year-on-year and accounted for almost three quarters (74.5 per cent) of spending on plastic cards, up by almost two per cent to the first quarter of 2008.

Conversely, spending on credit cards fell by three per cent in the first quarter of this year compared to the same period last year.

Gross lending figures showed £30.3 billion was lent to individuals during the three month period, down by 8.7 per cent compared to last year, when consumers borrowed £33.2 billion

The amount repaid in the same time amounted to £29.6 billion, a drop of 7.9 per cent on the first quarter of 2008, when £32.2 billion was repaid.

The ratio of credit card repayments was consistent on a year-on-year basis, at 97 per cent. However, the number of cheques cleared fell by almost 11 per cent in the same period.

Credit Card

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

Close