Cash? That'll Do Nicely!

Shoppers across the UK are set to choose cash over credit for the first time in ten years this Christmas.

According to a new report into spending habits, caution among consumers means they are using credit cards less

A survey of 2,000 British consumers found that 68% had no plans to use any credit in the next three months.

The research, by PricewaterhouseCoopers, also found that credit card borrowing has fallen by 3% in the last 12 months. It also showed that the number of cards in circulation has dropped by 8%.

In contrast, the number of debit cards has increased by 6%, suggesting household borrowing is coming to a halt.

The Government recently warned credit card companies last month to stop landing borrowers with debts they cannot afford.

New rules are also being considered include raising minimum monthly payments to avoid customers spending decades in the red.

However, even with the recent downward credit trend, UK consumer debt levels remain noticeably high in comparison to the rest of Europe.

On average, each UK household has total debt of around £60,000, made up of approximately £50,000 of secured debt and £10,000 of unsecured debt.


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