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"Brits to spend less on credit cards this year"

By admin | February 10th, 2009 | Credit Cards

Over recent years many Brits have delighted in giving their credit cards a good bashing, enjoying the ability to purchase what they want now and pay for it later.

Certain periods such as at Christmastime sees credit card users flock to the High Street or to online stores armed with their plastic, with huge sums of money being spent on these cards.

However, over the past year things have been different in that tighter credit conditions and the troubling financial climate has resulted in many either being unable to get a credit card or being more cautious about using one.

It seems that credit card borrowers are set to get even more cautious over the course of this year, according to one industry official.

Antony Jenkins, chief executive of Barclaycard, which is the leading credit card provider, claims that consumers are going to cut down significantly on credit card borrowing over the coming year as a result of financial worries and concerns over their job security. With the recession kicking in and the effects of the global credit crunch still wreaking havoc, many will be far more wary about spending money that they do not have.

He claims that consumers are now spending around 3 or 4 percent less on their credit cards now than they were a year ago. He added: “It doesn’t sound that much but typically you’d see spending increases, particularly when you get to this time of year, so it’s quite a marked pullback by consumers. We’d expect it (the decline) to be higher than that next year as people become more cautious and what’s driving that is a lack of confidence. Our expectation is people will spend quite a lot less on their credit cards next year.”

Tags: credit card spending

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