According to Morgan Stanley, credit card debt will rise this year by 35 per cent on last year’s season, hitting £1,270.
However, Patrick Muir, marketing director at the Morgan Stanley Credit Card, said that the study also showed that repayments were increasing and that people can manage their growing credit card debt.
“People are increasingly comfortable with using their credit cards to buy everyday items such as groceries, as well as for larger purchases like their Christmas gifts,” he said.
In addition, Mr Stanley claimed that people may be adding to their credit card debt to take advantage of schemes like cashback or point collection.
However, the study comes a week after moneysupermarket.com urged consumers to start their Christmas debt management now or else risk a poor new year.
With Morgan Stanley claiming that grocery spending is to average £339 in the run up to Christmas and £344 on the home and car, debt management now could help spread the costs.