Savvy spenders are crediting themselves out of the recession with clever borrowing, revealed a recent Halifax study.
It seems that consumers are spending more on their credit card out of choice rather than necessity as they want to reap the benefits that many providers offer.
Cash back and 0% interest on overseas transactions are among the Halifax rewards available to shoppers.
Halifax Credit Cards spokesman, Jon Roberts, said: “Credit cards can be a good method for short term borrowing – in a very competitive market, consumers should look around for the deal that best suits their needs.”
Mr Roberts reiterated that individuals planning to borrow on a credit card should organise their finances prior to spending so they are able to repay the balance in full and on time.
According to the bank 61% of UK adults own a credit card and consumer confidence has grown with 26% claiming they have more control over their borrowing compared to three years ago.
It’s unsurprising that nearly half of spenders use their plastic at least once a week as 34% chose their card based on the rewards.
However there are other reasons for joining the credit card fashion.
Approximately 17% of holders picked their card due to its introductory offer on balance transfers, meaning they have more flexibility to juggle finances without being stung by high interest rates.
The most common everyday purchases on credit are groceries, meals and nights out, and items for special occasions.
Whereas higher expenditure is widely avoided with only 1% using credit to pay for rent and mortgage, and 3% using their card for debt consolidation.
Location also appears to affect credit card usage with a higher percentage of daily spenders residing in London.
Picture courtesy of Sean MacEntee, with thanks
