UK Consumers Keep Spending In Check
- 53% pay more attention to incomings and outgoings compared to 6 months ago
-
21% look to reduce the number of credit cards owned
As the economy continues to slide, UK consumers appear to have abandoned their 'borrow now, pay later' attitude according to research released today by Callcredit Information Group. 53% pay more attention to their incomings and outgoings compared to six months ago; 35% check their financial statements more carefully, while 22% have started a weekly or monthly budget.
The study, carried out by YouGov, asked 2500 people about their current financial attitudes and steps they are considering taking in 2009. The economic situation has hit people hard with 38% increasingly worried about their financial situation.
Credit card ownership remains high: 70% of people surveyed have one or two credit cards with 30% owning between three or six. The majority (52%) pay off the full balance each month, but 7% struggle and only ever manage to pay the minimum amount required. Almost a quarter (24%) rarely or never pays their monthly credit card balance in full.
The research findings suggest that UK consumers are considering reducing their credit card usage in favour of debit cards. 21% are looking to reduce the number of credit cards they own and 14% expect to increase spend on their debit card.
Despite this seemingly more responsible attitude towards money, consumers still have a way to go before they are free of their debt worries. 17% are happy with a credit card balance between £500 and £1,000, but 26% believe that over £1,000 is an acceptable outstanding credit card balance.
Caroline Worboys, MD of Callcredit Information Group
Marketing Solutions, says:
"The financial situation has knocked UK consumers' confidence so
it's no surprise that they are keeping a close eye on their
spending. The 'borrow now, pay later' bubble has burst and it means
that companies need to work even harder to get consumers to part
with their hard-earned cash.
The large amounts outstanding on credit cards are indicative of the times we have been living in, but it is positive that consumers are taking a new approach to their personal finances and putting themselves in a better stead for the future."
Regional break-down of key statistics
|
|
North East | North West | Yorkshire & The Humber | East Midlands | West Midlands |
| I have become increasingley worried about my financial situation | 40% | 41% | 35% | 38% | 33% |
| I now pay more attention to my incomings and outgoings compared to 6 months ago | 56% | 46% | 56% | 48% | 53% |
| I pay my credit card balance in full each month | 37% | 46% | 54% | 57% | 53% |
| I only ever pay the minimum amount on my credit card | 10% | 6% | 5% | 8% | 6% |
| Between £500-£1000 is a reasonable balance to have on my main credit card when I receive my monthly bill | 11% | 8% | 20% | 28% | 22% |
| More than £1000 is a reasonable balance to have on my main credit card when I receive my monthly bill | 23% | 28% | 20% | 25% | 29% |
| I am considering reducing the number of credit cards I use | 20% | 28% | 26% | 16% | 23% |
|
|
East of England | London | South East | South West | Wales | Scotland |
| I have become increasingley worried about my financial situation | 42% | 40% | 39% | 34% | 48% | 35% |
| I now pay more attention to my incomings and outgoings compared to 6 months ago | 52% | 60% | 52% | 55% | 47% | 57% |
| I pay my credit card balance in full each month | 58% | 48% | 55% | 59% | 54% | 48% |
| I only ever pay the minimum amount on my credit card | 7% | 6% | 8% | 3% | 4% | 9% |
| Between £500-£1000 is a reasonable balance to have on my main credit card when I receive my monthly bill | 10% | 13% | 22% | 18% | 26% | 18% |
| More than £1000 is a reasonable balance to have on my main credit card when I receive my monthly bill | 16% | 34% | 26% | 21% | 17% | 23% |
| I am considering reducing the number of credit cards I use | 14% | 21% | 21% | 17% | 13% | 24% |
