Consumers and retailers may benefit from sensible use of cards
Recent data relating to the use of credit cards by Brits has indicated that many British consumers are using their credit cards far more sensibly and responsibly than in the past, which could prove good news for both consumers and retailers in the UK. This data throws a ray of light on the increasingly gloomy financial image that has been drawn in relation to the spiralling levels of consumer debt in the UK.
The data was put together from information provided in the latter part of 2006 from the Morgan Stanley Index, which indicated that although the amount that was being spent in the run up to the Christmas period was higher compared to 2005, the repayments that were being made on the credit card balance were also higher. This meant that Brits were spending more in the shops on their credit cards, but were also repaying the balances more quickly minimizing on fees and interest charges.
APACs also added information that indicated the number of British consumers that were repaying their credit card balanced in full were rising in the latter part of last year. There was a three percent rise in relation to British consumers that repaid their credit card balances in full between 2004 and 2005 according to figures. All of this adds up to increased responsibility in the use and the repayment of credit cards by Brits according to experts.
One analysts stated that the trend in consumer credit card spending was excellent news for both retailers and card holder in Britain, and that it seemed that consumers were more comfortable in using their credit cards for all sorts of purchases without the temptation to simply make minimum repayments when the statements came in, opting instead to make full repayments in many cases.
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