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Plastic is fantastic, according to spenders

Plastic is fantastic, according to spenders

Category: Credit cards

Updated: 05/09/2012
First Published: 04/09/2012

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 It is now over 6 months old so the content may be out of date.

The desire to carry cash is waning for many consumers, as card transactions become the favoured method of spending.

According to new research by Clydesdale Bank, 29% of people withdraw less than 10% of their money in cash form, preferring to make transactions by debit and credit cards, standing orders and online payments.

The report reveals a change in the spending habits by UK consumers and highlights the fact that the majority of people feel more comfortable with placing purchases 'on the card', as opposed to the reality of parting with cash.

Steve Reid, retail director at Clydesdale and Yorkshire Banks, said: "Cash is clearly no longer king when it comes to the UK's spending habits. Ten years ago, most people probably wouldn't have thought about using their cards for a low value purchase, now it is the norm for many people.

"Whether it is due to convenience or a way of keeping track of finances, more people are opting to use payment methods other than cash.

"However it's encouraging to see that people are still focused on their finances with almost a third (30%) checking their bank accounts on a daily basis and the majority (55%) regularly using online resources like price comparison sites and online planners to help them budget."

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