The amount we Brits spend on our credit cards is increasing. That’s according to new statistics released by the British Banking Association, who have revealed that £7.1 billion was spent on our cards during the month of October in this country – that’s an increase of over 5 per cent compared to the same month in the previous year.
The good news is that we’re getting much better at handling our plastic than ever before too – to go with increased use by British people, the amount of debt has gone down. Even though we borrowed £7.1 billion, we actually paid off £7.4 billion in the same time period, which would seem to suggest that we’re getting much better at budgeting and using our cards properly.
Will Becker, the CEO of credit card comparison site TotallyMoney.com, said: “It is great to see that the nation is embracing its plastic…given the free consumer protection credit cards offer and the rewards available, more people need to switch their spending from debit to credit cards.”
Credit cards are increasingly competitive with the benefits they’re offering too – along with cash back credit cards which reward consumers for spending money on their plastic; some cards offer things like air miles; charitable donations; and more. These benefits are just not available on purchases made using a debit card, so people are still spending more money on their credit cards to see the extra profits.
Along with Section 75 – a piece of legislation that protects consumers making purchases valued at over £100 using their credit cards – there’s increasing numbers of incentives for Brits to make more purchases using their plastic.
“It’s time people woke up to the wonders of credit cards and changed their spending habits,” adds Becker.