Friday, Nov 14, 2008
Living by card and die by card
BBC: 'Surprise' leap in card spending
Some 497 million purchases were made on on debit cards in September, a 12.7% rise on the previous month, according to UK payments association Apacs.
Is this because
a) we are out of recession now
b) we are spending while we can
c) just a blip
d) paying off debt by racking up more
Posted by peter_2008 @ 05:19 PM (733 views) Add Comment
6 Comments
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1. 51ck-6-51x said...
e) Decided to default, why not spend something on your friends first?
2. Fjcruiser said...
Debit card is like cash so the stats are meaningless. Credit card spending has increased because personal loans have been restricted.The credit crunch will not stop everyone from spending more. Some are buying the bare necessities with credit card cos they cannot make ends meet (having to repay their existing loans). Not too surprising stat.
3. Pete said...
Debit card spending doesn't rack up debt - so your point is largely invalid. Debit card spending suggests people are spending their own money rather than credit card company money.
4. fahrenheit451 said...
Wowa ... hold onto your horses ...
>>> "Credit card purchases were also up, by 9.4%, during the same period, ahead of gross lending which rose by only 7.4%."
If "people" have not got the cash to pay for food, etc they have to put it on credit. This is not an increase in spending its just the cost of living is increasing and it's being paid for by borrowing more.
Except that some debit card use increses are because there is less ready cash from the market traders, etc. Because the Revenue is tightening up and doing more checks, and more is going into the banking sector, etc. And lets not forget, there has been a dramatic decline in the use of Cheques, because they BoUnCe, Oh RuBeR DucK WheRe ArE You.
Idi0ts the l0t ov them.
5. dohousescrashinthewoods said...
f) Well I $*&# DESERVE that [insert luxury item], because I'm worth it! Where is all my money going? Compound what?
6. Yoss said...
Last line of credit and the most expensive
1) no more mew
2) over draft cut
3) can't re mortgage to a rate you can afford, because you only owned 5% of your house at peak prices.
Slam it on the card and hope it all picks up as quickly as it died.
A big spike in credit card lending before the seasonal Christmas blow out bodes ill for retailers and expect the card issuers to start chopping credit limits and cranking up interest payments, as they also know how this will play out.