Plastic in vogue in 2010 as borrowing rises
By UK CreditCards.com
Credit card transactions could rise in 2010 as Britons are now becoming more inclined to borrow again, according to a new report.
Research conducted by a number of leading bodies in the UK financial network has suggested that consumers borrowed 32p for every £1 they saved during the third quarter of 2009.
The findings represent a major turnaround from the previous three-month period, when households were focused on reducing debt, paying back £1.40 for every £1 they saved.
"After the dramatic retreat from savings in favour of paying off personal debt in the first half of 2008, consumers are now slipping back into old habits, by borrowing around a third of what they save," said Karen Barrett, chief executive of unbiased.co.uk.
The study also revealed that Britons borrowed a combined £4.2bn through credit cards, overdrafts, loans and equity release during the quarter, which was marginally lower than the figure of £5.11bn for Q2.
Calculations for the research were carried out using data supplied by the Bank of England, the British Bankers' Association, the Association of British Insurers, the Association of Investment Companies and the Investment Management Association.
Published: 7 January 2010
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