Credit Card debt on the drop

05/02/2007

Latest figures from Apacs (Association of Payment Clearing Systems) suggest that credit card spending is on the decline. Figures show a 2 billion pound drop on 2006 spending figures. A factor that has contributed towards the drop in credit card spending has been the rise of spending on personal debit cards. In fact, debit cards accounted for nearly two thirds of the spending on plastic.

The knock on consequence of this has resulted in suspected better state of affairs for debt management within the UK as people seem to be more inclined to repay more debt from their credit card.

A spokesperson for Apacs said that have seen more customers pay off their credit card bills. She also said “The proportion of personal debt caused by credit cards is going down while the proportion of debt that people are paying off is going up”.

Maybe this sort of news is giving indication that the UK public is becoming more debt aware and taking appropriate measures to ensure their finances do not spiral out of control.