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Credit card spending set to soar
According to the Morgan Stanley credit card index the summer is set to see credit card spending double in the UK . The reported average credit card spending for the next three months is likely to rise to an average £1,225 compared with £645 since February.
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Amongst the major costs are £331 for summer holidays, and DIY/ home repairs along with spending on cars are set to account for £363, partly due to increases in fuel prices. Mundane items like grocery shopping are also predicted to rise from £177 to £315, as the new years financial hangover subsides and entertaining increases with barbeques being dusted off from last year.
Morgan Stanley's marketing director, Patrick Muir observed: "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. One reason for this is that monthly statements help people keep track of exactly where their money is going."
Of all the age groups, the over fifties on average expressed the greatest expenditure plans using their cards over the next three months at £1,401 with £435 allocate for holidays, £411 for the home and £355 on the household groceries.
Mr Muir stated, "These results show that across the board, people are comfortable using their credit cards for all types of purchases, often making the most of cashback and balance transfer schemes and being rewarded for the things that they buy anyway".
The Index found that men seem to be most comfortable with their credit card spending with plans to spend an average of £1,355 by card, compared with women who predict about £1,097 in spending.
With a host of interest free period cards, the card providers have also set plans in motion to further enable consumers to reduce potential problems and make it easier to purchase abroad. Barclaycard has recently announced the launch of a new service to help prevent unwanted surprises whilst away, by no longer automatically launching fraud checks as a result of sudden bursts of overseas spending by customers who inform the card company that they will be travelling abroad.
Martin Warwick of Barclaycard said that, "At Barclaycard we want to ensure that cardholders enjoy a hassle-free holiday". He also said that, alongside offering emergency card replacement and cash advances anywhere in the world and assistance if a passport or travel documents are lost or stolen, "The service launched today will mean that if a cardholder informs us about their travel plans, we can instruct our systems to process transactions from the cardholder's travel destination."
Disclaimer:
All information contained in this article, is for general information purposes only and should not be construed as advice under the Financial Services Act 1986.
You are strongly advised to take appropriate professional and legal advice before entering into any binding contracts. |
