CREDIT CARDS
Plastic Cards and Internet Shopping Increase
Christmas shoppers are depending on their credit and debit cards to buy gifts online, a new study reveals.
The figures also show shoppers are preparing for Christmas progressively earlier, with plastic card spending on the high street increasing in November, relative to December.
The Payments Council’s research identified the total amount UK consumers spent with retailers in November was £11.2 billion, over five sixths of the December total of £13.3 billion.
November in 2009, in comparison, experienced just 80 percent of the December total of £13.0 billion, and in 2008, it was 69 percent of December’s £12.7 billion.
“The internet has really changed the way we shop at Christmas, with many of us choosing to shop on line to get the best deals and to avoid the shops at the busiest time of year,” commented Sandra Quinn, Payments Council director of communications.
“The problems of dispatching Christmas goods through the heavy December snows last Christmas mean this year, people are likely to get even more organised and get their orders in online early.”
Credit card repayments also increase by eight percent in 2010, making outstanding credit card credit its lowest level since the beginning of 2004.
Further proof that payment methods are moving towards plastic is the fall of the cheque, with usage dropping by 13 percent over 2010. Cash payment volumes were also shown to have fallen in 2010 by five percent.
Almost all the increase over the last five years on total card spending was shown to be on debit cards, £97 billion, compared to four billion on credit cards, indicating the country is using plastic over cash, but not at the expense of landing in debt.
According to research conducted by Unbiased, consumers are repaying their debts at record levels due to the volatile economic environment.
A total of £12,081 million was repaid in 2010, as a record 19p was repaid in every pound saved during the first two quarters in 2010.
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