Plastic ‘drought’ expected this Christmas

Posted 2007-11-2

The holiday season will see a financial drought when it comes to credit card usage, a new report predicts.  Both providers and retails should expect a downturn in plastic spending. 

A poll of nearly 2,000 adults by debt consultancy firm Thomas Charles revealed that around 25% of consumers plan to avoid spending on their credit cards entirely this Christmas. 

Another 10% said they intend to refrain from making large purchases on their cards for the next six months. 

A separate result indicated that 15% of those surveyed hold an unsecured debt from cards and loans of more than £10,000. The findings partially explain the reluctance of consumers to put even more strain on budgets that are already feeling the pinch. 

James Falla, Managing Direct of Thomas Charles, comments on the situation: “Interest rate rises and subsequent mortgage hikes mean that people have been relying on credit for their everyday expenditure - credit they can often ill afford. 

“But these results show that Britons are finally making positive steps towards confronting the amount of debt they are carrying - this is good news for the man on the street, but may signify bad news for retailers who have come to rely upon the vast amounts of credit spent at Christmas time.” 

An estimated £1.5 trillion of debt is held in total by Britons.

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