You are here: Home - Credit Cards & Loans -

Spending on credit cards falls for the first time

Written by:

Credit card spending fell for the first time since they were launched in the 1960s, with increasingly cautious consumers unwilling to take on more debt and more willing to compare credit cards.

The Association of Payment Clearing Services (Apacs) released figures that showed that credit card spending dropped from £122bn in 2005 to £120bn in 2006, a 2% fall.

There was also evidence that people were taking more time to compare credit cards, so that they get a cost-effective deal from their product.

However, spending on debit cards rose by 15% in the same period to £195.7bn, bringing the total amount of personal indebtedness in the UK to £1.29 trillion.

Of this, £1.08 trillion was in the form of mortgages and £213bn accounted for by consumer credit, such as credit cards, bank loans and HP agreements.

Surprisingly, outstanding credit on credit cards fell back during the year, dropping from a high of £58.3bn in January 2006 to £54.9bn in December. People were also taking more time to compare credit cards.

An Apacs spokesperson said: “People are increasingly paying off their credit card spending, showing they are becoming a bit more prudent.”

Spending on debit cards overtook cash for the first time in 2005, with £89bn spent in shops and online, compared to £81bn changing hands in notes and coins.



Related Posts


Tag Box




Financial fitness

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Five ways to get on the property ladder without the Bank of Mum and Dad

A report suggests the Bank of Mum and Dad is running low on funds. Fortunately, there are other options for st...

The essential Your Money guide to the April 2018 tax changes

As we head into the 2018/19 tax year, a number of key changes take place to existing policies while some new i...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co... Awards 2018

Now in their 21st year, our awards recognise the companies offering the best products and services to consumers

Money Tips of the Week

Read previous post:
UK works 31 days solid just to clear card and loan debt

Latest figures from, the organisation promoting the benefits of independent financial advice, show that as a nation, we have...