Shops may suffer due to decreased credit card spending this Christmas
November 20, 2007
Millions of credit card users may be looking to rein in on their Christmas credit card spending this year according to reports, and this could spell bad news for retailers, who stand to lose out on millions of pounds worth of transactions.
Recent reports indicate that as consumers try and curb their credit card spending retailers could experience a real slow down over the festive season. Around 25% of Brits are looking to cut back on their credit card spending this Christmas according to reports.
The poll, which was carried out by Thomas Charles, a debt company, indicated that part of the reason that consumers want to try and control their credit card spending is because of the level of debt that they are trying to repay. The poll showed that around 10% of consumers were struggling to repay debts in excess of £10,000. Around 30% of those aged 35-44 are looking to cut back on their credit card spending according to the figures.
The results also showed that over 40% of those aged 18-34 were looking to cut back on credit card spending, and this means that in addition to retailers suffering over the Christmas period many bars, clubs, and restaurants may also feel the effects.
One official from Thomas Charles said that debt levels were causing real problems, hence consumers’ determination to cut back on spending.
He said: “Interest rate rises and subsequent mortgage hikes mean that people have been relying on credit for their everyday expenditure — credit they can often ill afford. These results show that Britons are finally making positive steps towards confronting the amount of debt they are carrying. This is good news for the man on the street, but may signify bad news for retailers who have come to rely upon the vast amounts of credit spent at Christmas time.”
Alan Wright
20th November 2007
Recent additions:
- No change for interest rates in UK
- Most banks don’t offer best value mortgages
- CAB accuses financial regulators of sleeping on job
- Being a landlord means having to be wealthy
- Spending won’t be affected by house price crash
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