Credit cards Updated:
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.
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 Any products featured may be withdrawn by their provider or changed at any time.
Moneyfacts.co.uk will, like most other websites, place cookies onto your computer’s
hard drive. This includes tracking cookies.