UK Q1 2009 credit card lending drops 8.7%

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According to data released by APACs today, the first quarter 2009 credit card lending dropped by 8.7% to £30.3 billion, when compared with Q1, 2008. Repayments dropped at a slightly lower rate, 7.9% to £29.6 billion. While credit card spending has dropped the use of plastic continues to increase as UK consumers made .9 billion plastic card purchases totaling £94.2 billion compared to 1.8 billion purchases totaling £91.2 billion in the first quarter of 2008. The number of purchases was 4.0% higher than in 2008 Q1, and spending was 1.7% higher.

This rise in use of plastic has adversely impacted the use of cheques. Its usage fell by 10.6% and the total value of cheques dropped by 9.4%, compared with the same three months a year earlier. The use of plastic is expected to continue its increase as more purchases are made online, more plastic products become available (like debit cards, prepaid cards, etc.)


Source: APAC's