Wednesday 24th January 2007
New figures from credit provider Morgan Stanley compare credit cards as "financial aids" for borrowers.
According to Morgan Stanley, Britons are becoming increasingly credit-savvy and increases in borrowing are being matched by increased repayments in order to maintain a manageable level of debt.
While predicted spending for the first quarter of 2007 is up 68 per cent year-on-year, Morgan Stanley cites Bank of England statistics which show that 95.3 per cent of all credit card borrowing was paid back in 2005.
Patrick Muir, marketing director for the Morgan Stanley credit card, said: "It is encouraging to see that people are using their credit cards sensibly, with credit card spending and repayment figures increasing in tandem."
"Cardholders are becoming increasingly clever when it comes to being rewarded for the purchases they make," he added.
Mr Muir anticipated that borrowers are increasingly likely to compare credit cards in terms of rewards and incentives as they become more comfortable with spending on plastic.
Morgan Stanley offers incentives including three per cent cashback bonus and 200 buy and fly points on its platinum and buy and fly cards.
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