Credit cards trend shows a slowdown in usage

30/10/2008

Credit card spending is likely to slowdown according to a recent report undertaken by Datamonitor who are leading market analysts.  The report carried out claims that credit card holders will be using their credit cards much less.

The findings of the report show in contrast that there is likely to be an increase in the usage of debit cards.  The state of the economy and horrific figures for consumer debt may have contributed to the change in the consumer mindset.

Figures suggest debit card spending will reach a 14 per cent fall to £438 billion whereas credit card spending is anticipated to fall to £120 billion this year, resembling a 1.1 per cent downturn.

Andrew Fabricius the author of the report talks about the reasoning behind the forecasted changes and highlights that fall in spending on credit cards reflects that consumer confidence is weaker.