There is a growing trend of consumers using credit cards instead of cash for inexpensive purchases, new research has found.
A study by Sainsbury’s Credit Cards found that 7.55 million Britons are adopting the practice, spending a total of £3.64 billion on their cards every month.
The average spend for so-called “everyday credit card users” is £483 per month, while 1.41 million people regularly spend £750 or more, the survey found.
However, almost half (48 per cent) of all credit card holders are not earning rewards for their spending, with head of credit cards at Sainsbury’s Donald MacLeod urging customers to switch to a card “that gives you something back”.
Although the study found that these cardholders pay their balances at the end of each month, those currently dealing with credit card debt may wish to avoid becoming “everyday” users until they are in a more stable financial position.
David Kuo of Fool.co.uk recently stated that many credit card customers are missing out on lower interest rates as they are unaware that these are negotiable.
By Tom Musk