Brits cut credit card spending amid financial crisis

With a number of Brits feeling the epic Christmas credit hangover, a number of people have cut their credit card spending significantly according to a new report. 

Research from Santander found that UK credit card spending fell by 4% between November 2010 & November 2011.

The total number of transactions made per card user has actually increased, even though the overall amount has dropped.

Shops and retailers have seen a significant fall in the number of consumers who spend on credit cards. Sports and toy stores have been hit the hardest, with a massive 24% fall in the value of goods being spent on credit cards.

Those suffering from post-Christmas blues might be tempted to take a holiday and, with so many of us cash strapped, they may turn to credit cards.

The research, however, found that over the past 12 months consumers have spent 13% less on travel agencies, 9% less on airlines and 4% less on hotels.

Brits are keen to hang on to the little luxuries in life such as eating out and purchasing goods online.

The value of card spending at restaurants and bars has increased by 4% and mail orders have also seen a massive increase in spending through this method, with a 22% boost in the number of transactions.

Callum Gibson, Managing Director at Santander Cards, commented; “During times of austerity, you’d expect cut-backs to hit non-essential items like holidays and clothes, and our customer data supports this.

ìHowever, while we’ve seen a drop in overall spending, people are using their cards more – as demonstrated by the increase in number of transactions. Plus, with cards like Santander’s 123 credit card, customers are rewarded for their spending in supermarkets, department stores and petrol stations.î

Compare credit cards with Money Expert.
 

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