Tuesday 19th of May 2009
Credit cards tend to be used on the basis of what a consumer expects to earn in the future, an expert has suggested.
Neil Munroe, external affairs director at Equifax, explained that many people rely on this form of finance when they expect income to increase further down the line.
And he noted that a shift away from borrowing is now being seen, as Britons switch to debit cards in order to prevent themselves from accumulating more debt.
"It is mirroring what I think we all know is happening - people are spending what they have got rather than borrowing money at the moment," said Mr Munroe.
Those who are struggling to keep on top of their debts may wish to seek advice about the various options available to them, which could include a debt management plan that would reduce the amount that is owed.
Recent statistics, released by UK payments association Apacs, indicated that plastic card spending has increased by 5.4 per cent over the last year.
