New statistics show that the amount spent on credit cards is on the rise.
The latest release from the British Banking Association reveals that we spent £7.1bn on credit cards in October, up 5.1% on the same time last year.
Not only are we increasingly using credit cards, we are also managing them well. The stats show that while credit card usage is up, the debt sat on plastic is falling – we borrowed £7.1bn last month but repayed £7.4bn.
“It is great to see that the nation is embracing its plastic,” says Will Becker CEO of TotallyMoney.com. “Given the free consumer protection credit cards offer and the rewards available, more people need to switch their spending from debit to credit cards.”
Purchases made with a credit card are given extra consumer protection in the form of Section 75 of the Consumer Credit Act 1974, which makes credit card companies equally liable with retailers for problems with the product or transaction.
Also, if you choose your credit card wisely, you can benefit from building up cashback or airmiles, which you cannot easily do with a debit card.
“It’s time people woke up to the wonders of credit cards and changed their spending habits,” adds Becker.