Most spending will go on essentials, with home and car spending topping the list (at £377) followed by groceries (£341).

Luxury holidays will set Britons back £285 each in the next three months, the study finds.

But repayment figures have soared at the same time, the bank claims, finding that Britons are repaying more debt than at any time since 1998.

Morgan Stanley’s Patrick Muir, marketing director of the bank’s credit card, claims that the figures show an “increased confidence in the use of credit cards as a financial aid”.

MoneyExpert.com recently revealed that as many as 150 credit cards in the UK allow customers to transfer their balance across for 0 per cent interest, providing a potent incentive to switch to a card with more reasonable interest rates.

For more information about credit card rewards, click here.

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