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Credit card spending could go down for Christmas

Fri, 21 Oct 2005

It has been predicted that Britons are in for the coldest winter in a decade, and now it is believed that we are also heading for a lean Christmas.

Credit card spending is estimated to be ten per cent lower in the run-up to Christmas than in the same period last year.

The average amount charged to credit cards will be £940, Morgan Stanley Consumer Banking believes.

And even though it is the season to be jolly, Britons' social lives will be hardest hit by reduced spending. Morgan Stanley predicts that credit card holders will spend up to 32 per cent less on socialising than last year.

British consumers "who now demand more for their money" are becoming more savvy, believes Patrick Muir, marketing director at Morgan Stanley Consumer Banking.

Over the last few months, credit card spending has reduced significantly. The British Bankers' Association reports that credit card holders are now for the first time in the 12 years since records started, repaying more than what they are spending on credit cards.

Credit card debt and personal loans have added to the UK's personal debt levels, which is now in excess of a trillion pounds.

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