UK losing control of plastic spending says research

Two fifths of adults in the UK say that they feel unable to control their finances when they make the majority of their transactions on plastic.

The research, commissioned by National Savings and Investments (NS&I) says that women and 16-24-year-olds are the most unable to keep track of their spending.

Almost 40 per cent of cardholders said that they overspent on plastic, with most saying that they do not “feel they are not spending any money” if they are not handling cash.

Switching to using a debit card instead of best rate credit was discounted by 37 per cent of respondents.

“The shift from physical payment in the form of cash to virtual spending on cards has caused many people to lose track of their day-day spending,” said Dax Harkins, senior savings strategist at NS&I.

“While these forms of payment bring convenience, our findings shows that plastic payments lower some consumers’ financial awareness and control, causing them to spend more money, more easily.”

Card users aged between 16 and 24 had the worst spending habits, with 59 per cent going over their budget on plastic.

© Adfero Ltd

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