Consumers ‘showing caution over credit cards’

Consumers are becoming more cautious about spending on their credit cards as a form of debt management, it has been suggested.

Neil Munroe, external affairs director at Equifax, noted that debit card transactions are on the rise, while credit card usage appears to be falling.

He was commenting on the latest figures from Apacs, the UK payments association, which showed that spending on credit cards in the first quarter of 2009 declined by three per cent.

Mr Munroe remarked: “It is mirroring what I think we all know is happening – people are spending what they have got rather than borrowing money at the moment.”

The Apacs report revealed that total plastic card expenditure has increased 5.4 per cent compared to this time last year, reaching £94.2 billion.

Debit cards accounted for around three-quarters (74.5 per cent) of this figure, which represented a rise of approximately two per cent on the first quarter of 2008.

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