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Credit Card Spending Falls Again Bbc

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Spending on credit cards fell in August, according to the British Bankers Association (BBA).

It is the second time this year that monthly spending on credit cards has dropped.

The BBA said the fall reflected very weak retail sales and consumers being cautious about their spending.

A report from the banking industry earlier this month highlighted the long term decline in the popularity of credit cards.

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Further details...

Credit card spending falls again

"The doom mongers' prophecies look to have been wrong, as lending has continued to strengthen over the summer," CML Director General Michael Coogan commented.

"Although the market remains far from spectacular in terms of transaction numbers and house prices, the prospects of a significant market correction are receding."

He is really game calling this at this stage.

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Every ones stopped spending cos they have all maxed out and worse in a lot of cases.

Money saving expert 's, debt free wanna be, forum is testamoney to this.

Each day more and more post, who have well over spent.

Some only realise how much it adds to when the read their own list of debts, its amazing.

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I just got a letter saying the bank want to take my Visa card away because I haven't used it for a year or two. I guess they are getting desperate to ensure that all credit card users borrow as much as possible to keep that interest rolling in :).

I can understand that they don't want to pay to send statements with a zero balance every month, but since they also have my current account, which has often had a 30k+ balance in it over the last few years (though admittedly usually only for a couple of weeks at a time while transferring between accounts), I do think it's kind of taking the piss.

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I'm reminded on this from last year in Australia regarding the over bullish stanse on consumer spending, October 13, 2004

Harvey bets retail spree will go on and on

Retailer Gerry Harvey wants to make a bet with economist Chris Richardson of Access Economics. A big bet of, say, $10,000.[/

The guy is a billionaire and can talk it up all he likes.

Mr Richardson, however, firmly believes that Australia's booming retail sector is about to endure a fairly sharp downturn that will begin next year and reach its nadir in mid-2006.
Mr Harvey firmly disagrees. He says consumer spending is more likely to rise than to fall.
But he believes that, barring external shocks such as another devastating terrorist attack or significantly higher oil prices, consumers will continue to feel wealthy and so will continue to spend.

Higher oil prices, the chances of that happening are very slim! <_<

This have changed since then, consumers have slowed down spending considerably.

Look at the share price of Australia's largest home furniture/electrical retailer. AS of the article last year $2.93, now $2.76

ASX-HVN

An example of VI comments 1 year later shown up for what they really are.

Edit:quotes broken.

Edited by ShirtyTheSlightlyAggresiveBear

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Spending on credit cards fell in August, according to the British Bankers Association (BBA).

The BBA said the fall reflected very weak retail sales and consumers being cautious about their spending.

This sounds familiar. In the early 90's the Japanese stopped spending. House prices in Japan have been falling ever since.

Today German shopkeepers are tearing their hair out because people have money but won't spend it. German house prices are much lower than the UK and are falling.

When people stop spending, this reduces the number of jobs in the economy and it creates uncertainty. This promotes further caution and vicious circle of declining jobs is created.

To break this cycle needs lower taxes and lower interest rates. Unfortuneatly Gordon Brown cannot afford to do either because public spending is out of control.

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This sounds familiar. In the early 90's the Japanese stopped spending. House prices in Japan have been falling ever since.

Today German shopkeepers are tearing their hair out because people have money but won't spend it. German house prices are much lower than the UK and are falling.

When people stop spending, this reduces the number of jobs in the economy and it creates uncertainty. This promotes further caution and vicious circle of declining jobs is created.

To break this cycle needs lower taxes and lower interest rates. Unfortuneatly Gordon Brown cannot afford to do either because public spending is out of control.

....well said that man!!!!!!

...BUT, lower taxes or lower interest rates now will create inflation....which in turn will create inflationary wage demands....which will drive up company overheads,which in turn leads to joblessness when they outsource.

the only way out of this horrible mess is CUT PUBLIC SECTOR SPENDING....the one thing GB is doing the exact opposite of.

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Guest Charlie The Tramp
Spending on credit cards fell in August, according to the British Bankers Association (BBA).

It is the second time this year that monthly spending on credit cards has dropped.

The BBA said the fall reflected very weak retail sales and consumers being cautious about their spending.

A report from the banking industry earlier this month highlighted the long term decline in the popularity of credit cards.

Homeowners are remortgaging in record numbers to snap up the best interest rates. The amount loaned in remortgages reached £11.7bn last month, the same amount which used to be handed out in a whole year only a decade ago.

Here`s the reason they are remortgaging like mad to pay off their CC and other debts. <_<

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I thought the record re-mortgaging was simply down to people seizing the opportunity after the rate cut to get a better deal?

There is probably another simpler explanation.

I bet almost 2 years ago exactly there was a record number of mortgages taken out (height of boom) and therefore these mortgages are coming to the end of their promo period hence...record number of re-mortgages.

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Guest Charlie The Tramp
The amount loaned in remortgages reached £11.7bn

I take it the amount is additional to their existing mortgages. :unsure:

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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