Equifax sees consumer "cautiousness" over spending

Consumer behaviour is trending away from credit cards towards more responsible forms of spending, Equifax claimed today.

According to the credit reports firm, latest payments figures have signalled a new ’cautiousness’ in consumers, whose confidence has been hit hard by the financial crisis.

Apacs said earlier this week that a small fall in credit card spending over Q1 2009 was cancelled out by a rise in debit card use.

This could signal that Britons are less willing to borrow to spend than before - and are budgeting more tightly in the credit crunch and recession.

Neil Munroe, external affairs director at Equifax, said: ’We are seeing a switch which to my mind reflects a cautious consumer probably spending what they have got more than what they are expecting [to earn] in the future.’

He added: ’In terms of credit cards they tend to be used on a basis of future income. It is mirroring what I think we all know is happening - people are spending what they have got rather than borrowing money at the moment [when it comes to] funding purchases.’

Apacs said that plastic card spending rose by around five per cent to reach £94 billion in the UK over January-March 2009.ADNFCR-2318-ID-19176556-ADNFCR