Card Debt

Why is card debt decreasing

Being more cautious and paying off larger amounts have been given as the most probable reasons for the £3.5million drop in credit card debt in January 2007.

Let's not get too excited yet though. Figures for 2006 showed that spending on debit cards increased by 15% to almost £200 million.

Of course debit card spending is a different matter as the customer needs to already have the funds in their account for the transaction to go through. The popularity of debit cards is increasing with debit card spending outstripping credit card spending every year since 2001.

The recent figures show that around 50% of all spending at christmas was made on credit cards