Britons cut out the credit

Despite the best inducements and blandishments of credit card companies, Britons are intending to cut a large amount of borrowing from their lives, a new survey reveals.

The latest Morgan Stanley credit card index has shown that UK borrowers expect to run up £645 on plastic between now and April.

The figure is a 31 per cent reduction on the £940 they expected to spend in the last three months of 2005, and 11 per cent less than they spent in the same period of last year.

Spending on every day items and essentials is expected to remain stable, while the UK seems to have collectively decided that lavishing best rate credit on luxury items has to go.

“Following recent reports of a prudent festive period, our index shows that we can also expect to see a drop in credit card spending over the next three months, particularly on luxury purchases,” said Patrick Muir, marketing director for the Morgan Stanley Credit Card.

“Spending on everyday items remains steady, with grocery shopping being the top category for credit card spending.”

Men still remain keenest on credit, planning to spend an average £817 compared to an average £469 among women.

© Adfero Ltd

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