CREDIT CARD DEBT LOWEST FOR 7 YEARS AS SHOPPERS AVOID SPLURGING ON PLASTIC
Debt racked up on credit cards fell to its lowest since 2004 in July, though the total figure still stands at an eye-watering £59.8bn or £960 for every man, woman and child in the UK.
Bankers say that shoppers are using their cards more than before to take advantage of perks on offer, but they are trying to avoid adding to their debts.
The perks include up to 56 days of interest free credit, insurance benefits and the possibility of earning cash back on purchases.
Household budgets have been drained by the jump in gas and electricity prices and families are fearful of the outlook for jobs and the economy.
In that climate, cards are being used mainly as a means of payment rather than as a borrowing option.
The British Bankers Association said the number of purchases was up 4% in July to 170m, at an average value of £65 a time.
Interesting stuff. And as about 60-70 per cent of Brits don't use credit - this puts average balances closer to £2.5-3k. A lot of signs point to consumers drastically reducing their debts though.
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