Christmas spending with debit cards prove more popular

It is believed that over the Christmas shopping period this year that debit cards will indeed be used more frequently than credit cards.

There has been a trend recently depicting card holders as being more cautious, sensible and responsible over their spending habits, for example spending less and paying off more (or in some cases all) of their balance. It could be they only want to spend what they know they have in their account.

According to payments association Apacs, spending on debit cards in December is predicted to reach £20.4billion. This is an increase of £3.4billion, while the predicted expenditure on credit cards is £11.4billion.

This trend does not continue when we look at purchases made online. Apacs predicts that credit card sales will make up 67% of the total £3billion expected expenditure on plastic in December via the internet. Perhaps it is the peace of mind that comes with credit cards-whether it is insurance for the item or safeguarding your payment when purchasing online.

An Apacs spokesperson states “our penchant for plastic continues. This Christmas our plastic cards will continue to replace cash and cheques for our festive purchases. We see card holders becoming more responsible in the way they borrow-reining in their spending and focusing on repayments.”

This week the Association of British Credit Unions called on UK borrowers to use personal loans rather than credit cards. They describe credit cards as “a dangerous tool in the wrong hands”.