April 26, 2006

By Peter Kenny

Credit card spending by UK consumers is set to double over the next few months. A study just published by Morgan Stanley, the biggest investment bank in the US, has found that spending on is set to double from £665 to £1225.

The study found that Britons were expected to spend more on their homes and cards and with the bank holiday season upon us this spending is expected to soar.

For the first time men are expected to spend more than women with an estimated £1355 being spent compared to £1097 for a female. Grocery shopping and paying for holidays are other reasons for us to continue with our spending spree.

We are expected to spend £363 on our home and car over the next few months, an increase of  £211. The over fifties are outspending us all with £1401 expected to be spent using their. It is thought that over a third of this amount will be spent on a holiday for the summer.

Patrick Muir form Morgan Stanley said, "Britons are increasingly using their to pay for everyday items, including groceries, petrol and bills,"

"These results show that across the board, people are comfortable using their for all types of purchases, often making the most of cashback schemes and being rewarded for the things that they buy anyway."

Morgan Stanley also reckoned that more and more consumers are checking their credit card statement closely to ensure their spending does not get out of control.