Credit card spending decreases
Research from Tescocompare.com has shown that 14.6 million people have reduced spend by up to £100 per month on their credit cards. At the same time, 4.8 million individuals have increased their monthly spend on credit cards by an average of £412.
As almost half of UK credit card users are reducing their credit card spending by over £1,100 a year, one in three say they do not intend to reduce their credit card spending. Those reducing their spending have lowered their annual balances by £386 to £2,333. Reasons given for the reduction in spend include a desire to reduce debt, the wish to increase savings and lastly wanting to be less reliant on credit. 5.4 million say they intend to use their credit cards less in the future.
7 percent of those who have not made any cut backs say that they would not be able to live in the style to which they have become accustomed, and 11 per cent say that they would not be able to manage their finances without their credit cards.
Debra Williams, spokesperson for Tescocompare.com said: “In the current climate it’s encouraging to see so many consumers taking significant steps to reduce their reliance on credit. Even those who aren’t currently in a position to make cutbacks, could still save themselves some cash by shopping around for a better deal.
“Our research reveals only half of all credit card users ever having switched provider, therefore we’d urge anyone that uses a credit card to review their current card to check they’re on the best deal possible. Just switching to a card that pays a lower rate of interest or one which has an interest free repayment period could cut the cost of borrowing.”
Homeowners who have several credit cards could consider consolidating these with a debt consolidation loan. A debt consolidation loan is one of many options to consolidate debt and could put multiple debts in one place. Several monthly repayments for credit cards, store cards and hire purchase agreements will be replaced with one. If opting for a debt consolidation loan, it should be remembered that consolidating your debt may increase the amount you pay back overall and extend the repayment periods of your debts.
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