British consumers are reducing their debts by becoming less dependant on their credit cards, according to new figures from the UK Payments Administration .
The group’s latest quarterly statistics show that total credit card spend in the UK - both the number of purchases made and the amount spent - fell by 0.1 per cent in the second quarter of the year, reaching its lowest level since 2007.
According to Michelle Slade, a spokesperson for the financial comparison site Moneyfacts, this latest trend could be due to reduced mortgage payments and fears of unemployment .
Ms Slade continued by suggesting borrowers are choosing to pay off debts instead of increasing their savings due to the low savings rates currently on offer.
"If they are not getting the money on their savings it makes more financial sense to pay off their debts rather than put the money in a savings account," she explained.
"Hopefully, people have learnt the lessons from how things have been of late; hopefully we have all learnt not to get so much into debt ."
Brits Spending Less On Credit Cards
Wed, 23 Sep 2009
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