Figures from MasterCard revealed spending on cards surged to almost £6 billion.

The amount spent on credit cards was astronomical, increasing by almost 50 per cent from the previous month, mainly due to online shopping.

Vice-president of MasterCard Europe Brian Moore said: “Despite the traditional upsurge in spending at this time of year, UK consumers are clearly managing their finances carefully as concerns linger over rising energy prices and a general reluctance to enlarge personal debts at a time when unemployment is slowly rising and manufacturing output is declining.

“This all suggests that the actual growth in credit card spending may owe more to added convenience of shopping online as opposed to braving the crowded high streets.”

But amid suggestions of restrained spending, a report this week revealed personal insolvencies will rise in 2006.

The report by accountancy firm Grant Thornton revealed that there will be 20,000 personal insolvencies in the first four months of 2006 alone.

The firm says 6,500 of these will be from people spending too much on store cards and credit cards.

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