Debit and credit card usage 'goes up'
According to third-quarter statistics reveal, debit and credit card usage has increased.
More people may have been spending on their credit cards balance during the last quarter if new figures are anything to go by.
According to figures frin the Payments Council, the number of purchases made on plastic increased over the 3 months.
Utilising data obtained from the UK Cards Association, Link, Bacs, Cheque and Credit Clearing Company and Chaps, the figures demonstrate that there has not been a dramatic change in the use of debit and credit cards despite the tough economic circumstances.
According to the Payments Council, this form of payment – which could have been used with a 0% purchases credit card term – rose throughout the period.
There was infact a 6.9% hike in card usage, in addition to the value of purchases made, which also increased by 4.3%.
Although credit card spending by value fell by 0.7 percent, the amount of sales was up by 2.5 per cent.
Furthermore, gross lending on this form of plastic – including products with a 0% balance transfer – was 7.5% less than the previous quarter.
Commenting on the findings, Sandra Quinn, director of communications for the Payments Council, said they reflect stability in the use of plastic, despite the reports of some commentators that suggest people turn to their credit cards in tough economic circumstances.
"These statistics confirm what has been a trend for a couple of years," she said.
Ms Quinn added: "Spending on credit cards has remained relatively unchanged and interestingly we are still repaying proportionately more of our debt than we were three years ago".
According to Adrian Coles, director general of BSA, the emerging trends of paying off debts was prompted by the low base rate set by the Bank of England.
He spoke to the Telegraph, noting the lack of an incentive to save when the base rate stands at 0.5%.
As a result, there has been a decline in the savings balances in UK accounts, Mr Coles said.
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