Tuesday 1st August 2006
Credit card use is expected to soar this summer, according to recently released figures from a credit card provider.
The Morgan Stanley Card Index indicates that Brits are set to spend 35 per cent more on their credit cards between July and September than they did in the same period last year.
Predictions suggest an increase of £110 per person, making the average spend £331 over the three-month period.
Although travel and holidays are the key areas of growth for credit card spending, consumers are finding that plastic works nicely on smaller items as well.
Groceries account for 24 per cent of all credit card spending, the firm asserts.
Morgan Stanleys Patrick Muir claims that the figures indicate the rise in comfort levels in buying both large and everyday purchases on credit cards.
He added that shoppers are "becoming increasingly savvy when it comes to being rewarded for the purchases they make and with a raft of schemes available, from high street discounts to cashback, spending on credit cards is becoming more appealing than debit cards".
Men are expected to spend 32 per cent more on their credit cards over the next three months than women, forking out an average £1,296 compared to £976.
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