Credit cards are likely to receive an extensive workout this summer, with new research predicting that spending will be up 35 per cent on last year.
Consumers quizzed by Morgan Stanley said that they would be spending an average £1,136 on their credit cards this summer, compared to £839 in the same period of 2005.
Nonetheless, this is still eight per cent down on their spending during the previous three months, added Morgan Stanley.
“The increase in spending levels year-year demonstrates the rise in comfort levels in buying both big ticket and everyday purchases on credit cards,” said Patrick Muir of Morgan Stanley.
Homes, cars and travel were the three biggest areas for people’s credit card spending.
Around £329 was expected to go on homes and cars, compared to £194 last year, while holiday spending was predicted to be up to £331 from £221 last year.
Men are still the happiest to splash on plastic, spending an average of £1,296 over the summer, almost a third more than women’s £976.
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