Consumers cut credit card usage

14.6 million consumers (44%) in Britain are cutting back on credit card spending, according to research from Tescocompare.com.

Of those who have decided to cut back, the average saving is just under £100 a month or the equivalent of over £1,100 a year. But many of us are apparently unphased by the recession, with one in three consumers reporting that they have no intention of cutting back on their credit card use at all.

The research found that shoppers cutting back on their credit cards have so far reduced their average balance by £386 to £2,333. The reasons behind the cut vary: one in three (37%) has cut their credit card spend to reduce debt, a quarter (25%) to increase savings and a fifth (18%) just want to be less reliant on credit. A further 5.4 million (16%) plan to use their cards less in the future.

But despite these encouraging figures, the report has also revealed that 4.8 million credit card holders have seen their outstanding balances rise by £412 on average in the last six months. And of those, 2.3 million (7%) reported that they could not maintain their preferred choice of lifestyle without their credit cards and, one in ten (11%) would be unable to manage their finances.

Debra Williams, spokesperson for Tescocompare.com said:

“In the current climate it’s encouraging to see so many consumers taking significant steps to reduce their reliance on credit. Even those who aren’t currently in a position to make cutbacks, could still save themselves some cash by shopping around for a better deal.”

“Our research reveals only half of all credit card users ever having switched provider, therefore we’d urge anyone that uses a credit card to review their current card to check they’re on the best deal possible. Just switching to a card that pays a lower rate of interest or one which has an interest free repayment period could cut the cost of borrowing.”

If you are looking to switch credit card providers, it’s wise to weigh up all of your options before making a decision. TotallyMoney.com has access to a great range of credit card offers that could save you money.

Just visit http://www.totallymoney.com/credit-cards/ now to compare offers from top UK providers. When you find the right card for you, just click Apply to be taken through the application process.