Credit card spending ‘to grow 68% in three months’

According to the firm, Britons will spend, on average, £1,228 on their credit cards over the first three months of the year, compared to £730 in 2006.

Despite the possibility of severe credit card debt, the figures suggest that cards are becoming an increasingly common way of paying for goods and services, especially among the male population. Morgan Stanley found that men will spend a third more than women.

Patrick Muir, marketing director at the firm, said that people were using cards “sensibly” and with “increased confidence”. He pointed out that credit card spending and repayment figures are rising “in tandem”.

“Cardholders are becoming increasingly clever when it comes to being rewarded for the purchases they make,” he commented.

However, a new survey by advice site IVA.co.uk found that 96 per cent of respondents want the credit card industry to be better regulated, with 71 per cent saying that they think credit card providers are unethical.