Consumers are increasingly cancelling direct debit payments to charities, new research has revealed.
The Charity Direct Debit Tracking Report 2009 from Rapidata has found cancellation rates have increased since the onset of the credit crunch.
For the first time the level of direct debits being halted by consumers has hit five per cent, action which could form part of a debt management plan.
Managing director of Rapidata Scott Gray noted that before last year, the number of people stopping payments to charities was decreasing.
“Cancellation rates skyrocketed last summer so that, for example, in July, 54 per cent more people cancelled their direct debits than in the average July for the pre-recession period,” he said.
Mr Gray added that it is not possible to predict whether cancellation rates will increase further during 2009.
Investment manager for Bestinvest Hugo Shaw recently urged consumers to be “prudent” with their spending in order to avoid running into future debt management problems.