Card spending slides, consolidation climbs
Consumers are starting to seriously consider the possible detriments of spending “willy-nilly” on their credit cards, as demonstrated through a reduction in gross spending towards the latter part of last year, reveals a new report.
According to APACS, recent statistics show that even though credit card spending during the back end of 07 exceeded that of 06, annualised growth levelled out at around 5%. Faired against annual growth over the last ½ decade, 5% represents the lowest growth increase over the period.
A spokesperson for the body commented that annual growth over the last 5 years has equated to approximately 10%. Admittedly, total spend up and through the Christmas 07 period was high (around £33 Billion), but stats suggest the compound growth had reduced, and will hopefully continue to reduce throughout 2008.
In related news, the use of personal loans as a means to consolidate debt had also rose in the first month of 08. Accordingly, a consolidation loan increase of 15% was witnessed throughout January 08, with the average consolidator requesting an advance of around £15,000. However, as of yet there is no evidence to suggest that consumers are switching to personal loans as an alternative to credit cards when looking for facilities to manage their debts.
