Brits charging less on credit cards, using debit more


When it's OK to fund your IRA with a credit card

A financial advice firm has welcomed news that Brits are using credit cards in a more sensible way.

Think Money responded to a report from UK payments association APACS, which found that credit card spending was down while the use of debit cards was up.

According to Think Money, these figures -- along with other statistics -- show that Brits are getting the message on when and how credit cards should be used.

"The shrinking usage of credit cards may be another indicator of changing attitudes amongst consumers," the firm commented.

"Used correctly, credit cards can be very helpful -- as an emergency source of cash, for example -- and some people prefer to use credit cards to make most of their purchases, as many include free purchase protection insurance."

Figures released by APACS last month showed that British consumers spent a total of £32.3bn on debit and credit cards in December.

Purchases on credit cards contributed £10.8bn to the total.


Published: 13 March 2009