UK shoppers shun credit cards

25 November 2005
Changing consumer mood means that while more Brits are keen to pay with plastic, they are paying for less on credit cards.

UK payments association Apacs said people are set to spend less on the High Street using credit cards this Christmas for the first time in ten years.

Apacs says that even though Brits are set to spend £400 million less on their precious plastic, debit cards still remain a favourite way of spending.

However, the payments association says consumers should not steer clear of credit cards altogether.

"Although we actively encourage people to make sure they know how and when they are going to pay back any money they spend on their credit cards, there are some situations where they are the obvious choice for consumers," said Apacs director of communications, Sandra Quinn.

"Not only do they remain ideal for high-value items which enjoy additional protection under the Consumer Credit Act, every canny consumer is well aware of the various financial benefits credit cards can offer: whether it’s making use of the interest free period to forestall payment, earning points on a loyalty scheme or, of course, cash back," she added.

Apacs has said even though credit cards may be shunned when it comes to High Street spending, they will remain popular with online shoppers.

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