LINK found between credit crunch and rising cash usage

Posted 2007-12-13

Fears of the rising credit crunch seem to be driving consumers closer to their ATMs during this holiday shopping season. An increase, in the first ten days of December, by 7.1% over last month has been noted by the cash machine network operator, LINK. For the past four years, according to LINK, the figure was closer to 5%.

Conversely, payments association APACS reported last month a prediction in the fall of cash spending to the tune of 5% over this Christmas season – dipping from £19.8 billion in 2006 to £18.9 billion.

Credit card mogul MasterCard reported weaker sales in shops for the month of November, showcasing a decrease in the annual retail sales growth rate from 4.5% to 4%.

The latest overall retail spending figures, released yesterday, seem to support the declining credit usage trends.

Bearing in mind these facts and figures point directly to human beings attempting to stay afloat financially, while putting a bit of figgy pudding on the Yuletide table, will ultimately benefit them by using what cash they have, rather than landing deeper in the hot winter coals of over-extended credit.

Leave a Reply