Credit Card Purchases drop 3million in a Year



Credit Card Purchases drop

Credit Card Purchases drop

Credit Card purchases dropped three million from 2009 to 2010, according to the British Bankers Association.

New figures from the British Bankers Association (BBA) show that consumers are managing their credit cards more efficiently.

The latest report from the BBA shows that shoppers are avoiding high interest rates and charges, while also reducing their balances.

Card purchases fell from around 165million to 162million between 2009 and 2010, highlighting a lower need for borrowing by consumers.

The average amount spent per purchase by consumers has fallen to £64.

However, that figure it expected to have risen in the months of November and December, as a consumer intelligence poll showed, that half of the respondents had planned to use their credit cards to fund their Christmas spending.

Credit card customers have also cut back on costly cash withdrawals, as well as the number of transactions they make.

Debit cards withdrawals from ATM’s are typically free of charge, in comparison to credit card providers who tend to charge for withdrawals, along with applying their higher interest rates for borrowing money this way.

It appears that Britons are realising this fact, as figures have showed that the size of an average cash withdrawal dropped by over 20% to £136, coinciding with the overall number of cash withdrawals dropping by nearly 18%.

The figures from the BBA have also highlighted that Britons are attempting to reduce the size of their credit card balances, with card debt falling by £281 million in during the month of October.

This figure has brought the total credit card debt in the UK down to just over £60bn, its lowest figure since August 2004.

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