Friday, July 14, 2006
Category:
Consolidation
According to recent figures from Morgan Stanley, credit card spending was set to rocket over the next 3 months, the home and car being primary reasons.
British card holders had limited spending in the first quarter of the year and it was predicted that credit card expenditure was set to rocket from £645 to £1,225 in the second quarter.
As well as funding home improvements, cars and holidays were also quoted as reasons for spending on plastic. Morgan Stanley stated that men were planning to spend more than women on credit cards, predicting to outspend them by £258.
Location wise, people in the Midlands and Wales were likely to spend more than any other region on their homes and cars during the spring while those in Southern England were the biggest grocery spenders.
Patrick Muir, the Morgan Stanley Credit Card Marketing Director commented ‘We are now seeing a rise in spending on DIY and holidays as we hit the Bank Holiday season. Britons are increasingly using their credit cards to pay for everyday items, including groceries, petrol and bills.’
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People who find themselves having to constantly use credit cards as a payment method could consider consolidating these debts into a personal
secured loan. This could lower monthly repayments and could allow more expendable income each month. It is however important to remember that spreading debts over a longer period increases overall interest charges.
