Shops could see reduction in Christmas credit card spending

According to a recent report millions of credit card users are looking to tighten up on their credit card spending this Christmas, which could see shops and retailers experiencing a slow period as cardholders try desperately to control their credit card spending.

The result of a recent poll suggested that a quarter of Brits are looking to avoid using their cards at all over the Christmas period.

The poll was conducted by debt firm Thomas Charles, and showed that around 15% of consumers are trying to pay debts of £10,000 or more, which is part of the reason for consumer determination to rein in their credit card spending. Of those planning to slash their credit card spending over Christmas figures were high in the 35-44 age group, with 30% of this group planning to cut back on credit card spending over the festive period.

However, it is not just the shops that will suffer as a result of this consumer cutback on credit cards. Bars and clubs are also set to suffer, with over 40% of those aged 18-34 stating that they will cut back on their credit card spending. Around 10% of over eighteen hundred adults that were polled have also stated that they will think twice before they use their credit card to make a large purchase in the next six months.

According to one official from Thomas Charles personal debt levels in the UK had reached 'breaking point'. He stated: "Interest rate rises and subsequent mortgage hikes mean that people have been relying on credit for their everyday expenditure -- credit they can often ill afford. These results show that Britons are finally making positive steps towards confronting the amount of debt they are carrying. This is good news for the man on the street, but may signify bad news for retailers who have come to rely upon the vast amounts of credit spent at Christmas time."

Tom Smith
13th November 2007

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