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Consumers cut credit card spending
31/01/2006 14:50:00
The amount of money spent by Brits on their credit cards is expected to fall over the next three months, not only in comparison to the last three months of 2005, but also year-on-year.
According to figures from the Morgan Stanley credit card index, consumers think they will put £645 on plastic during the first quarter of 2006.
This is an 11 per cent fall compared to the same period in 2005 and a 31 per cent decrease from the £940 that Brits expected to spend in the last quarter of 2005.
Patrick Muir, marketing director for the Morgan Stanley Credit Card, said: "Following recent reports of a prudent festive period, our index shows that we can also expect to see a drop in credit card spending over the next three months, particularly on luxury purchases.
"Spending on everyday items remains steady, with grocery shopping being the top category for credit card spending."
The biggest spenders will be those in their 30s, who will put an average of £719 on their credit cards.
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