Spenders turning to credit cards

30/12/2008

Spenders are moving away from debit cards and increasing credit card use, according to new figures from Sainsbury's Bank.

Consumers are starting to "shift back" to credit cards in an attempt to take advantage of introductory deals.

Donald McLeod, head of credit cards at Sainsbury's, explained that "people are also finding themselves slightly more economically stretched and are therefore using some of these short-term secure borrowing tools to manage their household finances".

"We are seeing customers migrating their spending from debit to credit card. So from where we have traditionally seen a steady move away from credit card to debit card spend, we have seen that shift back," he added.

Datamonitor's recent UK Plastic Cards 2008 report has revealed that card spending has reached £540 billion per year. This is up by 2.3 per cent on 2006's figures when £42.3 billion was spent on debit and credit cards.

Tags; Debt Management and Banking,

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