New research has revealed that Britons are trying to cut down on their credit card usage in light of the economic downturn.
Consumers are turning towards debit cards and away from a multiple-credit card, debt-accumulating lifestyle, according to a new study.
A survey by Callcredit Information Group revealed that 70 percent of British adults currently have one or two credit cards, while 20 percent have between three and six. However, 21 percent of respondents said they are keen to reduce the amount of cards they own, while 14 percent said they will be trying to spend more on their debit cards in future.
"The financial situation has knocked UK consumers' confidence so it's no surprise that they are keeping a close eye on their spending," said Caroline Worboys, managing director of the research organisation. "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."
But some consumers still appear to be comfortable with large amounts of debt on their credit cards. Some 17 percent of the people who took part in the survey said that an outstanding balance of between £500 and £1,000 was acceptable and 26 percent said they were happy being more than £1,000 in the red.
"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," added Ms Worboys.
