Brits to cool borrowing on credit for the time being
It appears that, following the costly Christmas period, British consumers are planning on cutting down the amount of spending they put on their credit cards.
The Morgan Stanley Card Index shows that Brits will put on average £645 on credit over the next three months, down by 31 per cent on the average amount of spending put on credit over the last three months of 2005.
It appears that these cutbacks will centre on luxury items, socialising and spending on the car and home, but people will still finance their spending on everyday goods in this way, as the reasonable rates offered by many credit cards remain attractive to consumers.
Patrick Muir, marketing director at the Morgan Stanley Credit Card, said: 'Spending on everyday items remains steady, with grocery shopping being the top category for credit card spending.
'Customers seem to increasingly recognise the advantages of using their credit cards on everyday items, as they can receive benefits such as cash back on all their purchases.'
Breaking figures down regionally shows that the biggest cutback will take place in London, where the amount of spending put on credit over the next three months will be £673, down 38 per cent from the fourth quarter of last year.
By contrast, the amount put on credit by the average northerner over the next three months will fall only slightly to £530, which is close to the £616 that will be the average for the south over this same time period. | 
