Consumers expected to spend more this Christmas
December 16, 2010
It has been claimed in a report from the credit card and banking giant Barclays that credit card spending is set to increase this Christmas. Although many people are still experiencing difficulties due to financial and economic problems it is thought that collectively consumers in the UK will spend tens of billions on credit and debit cards over the holiday period.
According to the figures from Barclays consumers in the UK will spend around £50 billion between them over the holiday period, and this will reflect an increase of 8 percent compared to last year. Many are still suffering when it comes to their finances but this does not seem to stop many people from dusting off their plastic cards and getting online to make purchases such as gifts and clothes.
The High Streets have suffered over recent weeks because of the bad weather, and whilst High Street retailers have taken the hit because of the weather conditions online retailers have enjoyed huge profits, with consumers choosing to shop from the comfort and privacy of their own homes using their credit cards and debit cards rather than brave the freezing temperatures and head out to the shops.
However, in the lull between spates of bad weather consumers have also been hitting the High Street with their credit and debit cards, which has resulted in further spending.
Tags: December, economic problems, hit, Christmas and holiday season, debit, BusinessOne official from Barclays stated: “The early snow falls this month meant that the start of December was a little quieter on the high street than expected.” He went on to state: “This is likely to put even greater pressure on retailers as we draw to the end of the Christmas countdown, with customers being forced to do their shopping at the last minute.”
Consumers make everyday purchases with credit cards
December 2, 2010
An industry official has pointed out how people are now using credit cards to make everyday purchases rather than reserving them for one off purchases, luxury items, or more expensive items. In the past many people that had credit cards only used them in emergencies or if they were buying something that they could not afford to pay for in one go.
However, these days more and more people are using their credit cards to make everyday purchases, from paying for groceries and travel to paying for drink and lunch in the pub. The convenience and ease of credit cards has made them very popular amongst consumers that don’t want to be carrying cash around everywhere. They have also proven to be a financial lifeline for many people that have suffered financial struggles due to the credit crisis and recession.
Richard Sorsky, who works for the UK Insolvency Helpline, said that credit cards were no longer seen as a luxury, and rather than being used by wealthier people, as they once were, they were now tools that were used by the average consumer to pay for many different items both online and on the High Street, as well as by phone.
He said that more people were now spending instead of saving, and this was because it was impossible to save any significant amount of money for some people due to the high cost of living. There is also the fact that most people are not getting any return on their savings due to low rates of interest from banks.
Another recent report has also highlighted how popular credit cards are becoming, but industry experts want to ensure that consumers are being sensible with their credit cards as well as enjoying the convenience and ease that they offer.
Tags: consumer, buying, consumers, recession, Richard Sorsky, Credit Cards