Consumers spend £4 billion less on credit cards

08/08/2008

According to recent research, consumers in the UK have spent £4 billion less on their credit cards in the first half of this year compared to the same time period last year. This shows continuing signs that the UK economy is slowing down and consumers do not have the confidence to spend in the current climate.

According to the findings, only a staggering six per-cent of consumers have said that they have spent more on credit cards in the last six months. One in five men have admitted to not owning a credit card, and women seem to be more careful about the use on their credit cards with twenty-eight per-cent now spending less. 

The results also suggest that people living in certain parts of the country are spending less in this way compared to others.

The commercial and operations director at G2 Data Dynamics Alan Thorpe said, “while there has been a general slowdown in consumer spending, the change in habits is more likely due to a redirection of spending towards ‘essentials’, such as food, energy and mortgages, which many would not normally pay for using a credit card.

“With little surplus cash about, it’s essential that companies listen to their customers and give people the products and services they want. It is also crucial that they maintain ongoing contact with customers during this downturn, to ensure spending bounces back when the economy recovers.”