Using cash instead of credit cards is a way of keeping "tight control" of finances, it has been claimed.

Figures from the British Retail Consortium (BRC) show that cash is used for 60 per cent of transactions, compared to 54 per cent last year.

BRC spokesperson Richard Dodd explained that the rise is down to the credit crunch and the fact that people need greater control over how much they are spending on a daily basis.

Mr Dodd added that people are not just being put off credit cards as they are reluctant to borrow, but debit cards are being used less as well.

It is harder to keep track of expenditure when using credit or debit cards, he explained.

"The thing about cash is it's a tangible amount," he said. "You have either got it or you haven't got it.

"It's a very ready way of monitoring how much you are spending and making sure you don't spend money you haven't got."

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