Wednesday, July 22, 2009
Category:
Consolidation
According to an analysis conducted by Virgin Money Credit Card, the first quarter of 2009 saw a 25 percent increase in the amount spent on going out.
In particular, the results show that expenditure in bars, cinemas, restaurants and theatres rose to £20 million in this period, compared to a sum of £16 million during the same months of 2008.
Further year on year comparisons reveal that the most significant increase came in March of this year when spending was 55 percent higher than in March of last year. Virgin Money Credit Card views this as an added sign of a potential High Street recovery. With regard to utilising credit cards to fund entertainment, it was found that £6.7 million was spent in bars, restaurants, cinemas and theatres in April of this year, which marks a 26 percent rise from the figure recorded in April last year.
Spokesman at Virgin Money, Grant Bather, commented: "Analysis of our customers' spending shows that they are more willing to spend on entertainment and leisure which is a sign of a return of confidence.
"Previously we have seen a slowdown in spending on leisure as people tightened their belts and were less willing to spend unless it was on essentials.
"The effect of the late Easter this year may have boosted spending as people have gone out over the long weekend but this is an indication of some green roots if not quite green shoots.
"The spending is responsible as there are no signs of people getting into debt and customers should be careful to spend what they can afford and to have a plan for repaying any debt.”
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Those who have outstanding credit card balances along with personal loans or store cards, could consider consolidating these with a debt
consolidation loan. One of many options to consolidate debt, a debt consolidation loan could leave the borrower with just one monthly repayment as opposed to juggling several. In addition, this new monthly repayment could even prove to be lower than the sum of existing outgoings, thus freeing up extra money each month. However, when taking out a debt consolidation loan, it must be remembered that consolidating your debt may increase the amount you pay back overall and extend the repayment periods of your debts.
