Credit card spending down in 2011
Brits have been spending less on their credit cards over the past 12 months, with travel one of the worst affected industries.
That is the finding of a survey carried out by Santander Credit Cards, which found that average credit card spending across the UK is down by 4%.
It was found that the number of transactions carried out on credit cardsactually rose by 1% in 2011, but that people were spending less each time.
Many industries saw a decline in credit card spending, with hotels, clothing shops, supermarkets, and department stores all seeing a drop in credit card revenue.
But it is the travel industry that has been hardest hit, as people look to save money by avoiding credit card charges.
Airlines saw a drop in the value of credit card spend per user of 9%. Travel agencies fared even poorer, seeing a drop of 13%.
“During times of austerity, you'd expect cut-backs to hit non-essential items like holidays and clothes, and our customer data supports this,” said Callum Gibson, Managing Director at Santander Cards.
Many people are now using prepaid cars, rather than the traditional credit card, as a way of curbing their spending.
There are a range of prepaid credit cards available on the market, offering a safe and secure way to shop online and abroad.
These include the Orange prepaid card, which is one of the newest on the market. The mobile phone company is currently offering customers a range of incentives for signing up.
Orange is offering customers a refund on their £5 sign-up fee if they load £20 on to the card by 29th February, but this offer is only available with Compare prepaid until 31st January.
“We are extremely delighted to be able to offer to all of our prepaid customers this exclusive offer from Orange,” said Raffick Marday from comparepredpaid.co.uk.