The UK is turning its back on cold cash and spending a record amount on their plastic, reveal the latest figures from UK payments association Apacs.
More than £25 billion of plastic transactions were recorded every month during the first half of 2006, adding up to a record £151 billion of purchases.
The UK also seems to be getting wise to the ruinous rates charged by many credit cards, with 70 per cent of transactions being charged to debit cards.
Three years ago the credit/debit split was roughly 50/50 but debit cards have been steadily gaining ground since, said Sandra Quinn of Apacs.
“Our figures show that while there are certain situations when we prefer to use a credit card rather than a debit card, there is a continuing trend to pay more frequently by debit card.†
“This could reflect the fact that as a nation we are keeping tighter control over our finances; recent Bank of England figures show that we are continuing to payback a higher proportion of our credit card bills than we have historically.”
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