Finance & Investment Online Shopping Consumer Will seasonal credit card spending soon become obsolete?
However, figures of credit card spending over the last six months appear to have confounded conventional seasonal patterns in credit card spending. Usually, UK consumers are known to use their credit cards heavily in December and the months surrounding the Christmas period. However, figures released by the BBA in early January show that credit card borrowing in December 2006 fell by £0.3bn, while overall consumer credit over the course of the year grew by only two per cent. At the time, David Dooks - the BBA's director of statistics - commented:
"The annual growth in consumer credit, at only 2%, is low by historical comparison and, although strong Christmas sales have been reported, our December figures suggest that spending was not fuelled by more borrowing on credit cards."
The BBA's most recent report shows that over the past six months, credit card borrowing has reduced by an average of £144 million each month - although the reduction in April was short of this by £1 million at a £143 million drop. The constant fall in credit card borrowing since October last year seems to defy seasonal patterns. This time, David Dooks explains:
"High house prices and increasing monthly repayment costs are causing a slow down in the mortgage market and people are using money from their accounts instead of borrowing to meet their spending needs."
It certainly seems as though the four rises in the Bank of England base rate that have occurred since August 2006 have had an impact in consumer credit card spending. With an effective cap on the mortgage market in place, consumers have begun to spend from their accounts rather than with their credit cards.
Another reason for the drop in credit card borrowing could be attributed to better planning of seasonal spending. For instance, many consumer credit agencies recommend better planning of seasonal purchases months before Christmas arrives - budgeting for greater spending levels at Christmas is likely to reduce the burden on your levels of credit card debt and consumers may have heeded this advice.
If you're planning to apply for a credit card, or switch to a new credit card provider, make sure you choose one with a longer balance transfer or interest-free period. This will make it easier for you to maintain your seasonal levels of spending, while still remaining in control of your levels of credit card debt.
Related Tags: credit card, apply for credit card, consumer, credit card uk, spending, seasonal
Your Article Search Directory : Find in Articles
Recent articles in this category:
- Health Articles - Air Purifiers and Seniors - What you Should Know
Are you a senior concerned about your health or do you know someone who is? Respiratory troubles are - Fashion & Cosmetics Articles - Finding the Perfect Pair of Jeans
If you're a frequent wearer of jeans, you're probably all too aware of just how much of a differen - Home Improvement Articles - More Facts about Stairlift Features
If you have been searching for more information about the basic features of stairlifts but didn't kn - Consumer Articles - World Roofing to 2014
World Roofing to 2014 report ( http://www.bharatbook.com/detail.asp?id=144994&rt=World-Roofing-to-20 - Consumer Articles - Ethnic Hair, Beauty and Cosmetics Products in the US
Ethnic Hair, Beauty and Cosmetics Products in the U.S. report ( http://www.bharatbook.com/detail.asp - Consumer Articles - Subliminal Persuasion Techniques Used on You
Have you ever wondered whether a salesman is trying to use subliminal persuasion techniques on you? - Finance & Investment Articles - Lessons From Behavioral Economics
The filed of behavioral economics repeatedly shows that we are not as rational as we think when maki - Electronics Articles - Various Headphones Types to Choose
These days, headphones have been becoming audio equipment that many people need. This device will he - Electronics Articles - The Superiority of Wireless Sennheiser Headphones
Sennheiser is a famous headphone manufacturer that has been gaining a well reputation in the audio m - Online Shopping Articles - Womens Glasses: Be the talk of the town!
Don't you want to add elegance and panache to your personality? Well, now you can do it with style w
Most viewed articles in this category:
- Ford Focus Recalls
As I write this, it seems that the biggest concern the Ford Motor company has is not Ford - What is Ethical Clothing?
Garment workers throughout the globe are traditionally paid the minimum wage and work long hours - Is Big Brother A Good Thing?
Big Brother is watching - and it could be a good thing. Closed Circuit Television (CCTV) is bei - A look at the ways to pull yourself out of holiday debt
With the holiday season over, many people now turn their attention towards the problem of paying f - The 2 Types Of Hybrid Cars
Many automobile companies have spend millions of dollars each year in research and development of mo - Top Digital Camera Accessory this Holiday Season - a Digital Picture Frame
Don't you love advances in technology? Around the holidays, this is when I typically put on my tech - Let Superbreak help you with your Christmas shopping
As Christmas approaches, Superbreak, the UK's online holiday specialist for short breaks, has just a - Five Lies You Are Being Told
We hear lies all the time. Of course we know that when a politician says "no new taxes," he is lying - Consumers need protection from Payment Protection Insurance
Consumers and consumer protection organisations are increasingly putting pressure on financial pro - Break for a holiday without breaking your bank
Holidays give us something to look forward to: fun, relaxation and exciting new experiences. But t