Further Fall in Credit Card Spending
Spending drops in August according to new figures
21st September 2005
Figures from the British Bankers Association (BBA) show that spending on credit cards fell in August, with overall borrowing down £146m as cardholders began to repay their balances.
This is the second such fall this year - a drop in borrowing of £40m in April was the first time since 1994 that total credit card debt hadn't increased month on month.
The BBA has put the fall down to a combination of poor retail sales in general, and consumer's reluctance to spend as awareness of the huge consumer debt mountain grows. Uncertainty over the economy has contributed to recent low spending figures as a whole, with the high street especially badly hit.
However, there is concern that the popularity of credit cards may be slipping in the medium to long term. The widespread adoption of debit cards means that one of plastic's key benefits - convenience - is no longer the sole preserve of the credit card industry.
Read More: BBC : Credit card spending falls again
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