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January 28, 2014

Credit card spending to increase by 8% in 2014: TotallyMoney.com research

Total spending on credit cards is expected to rise from £80bn in 2013 to £86bn in 2014, an increase of 8%, according to a research by TotallyMoney.com.

By Verdict Staff

Total spending on credit cards is expected to rise from £80bn in 2013 to £86bn in 2014, an increase of 8%, according to a research by TotallyMoney.com.

The research, which was carried out in partnership with the Centre for Retail Research, also found that consumers will perform around 2.5 billion retail transactions through credit cards in 2014, an increase of 2% compared to 2013 figures.

Each credit card holder is expected to spend an average of £2,892 through their cards.

Around 30% of credit card spending will be made on groceries and other food items including alcohol, which will rope in £25.7bn. Additionally, travellers will spend around £9bn through booking overseas holidays.

TotallyMoney.com CEO and co-founder, Will Becker, said although consumer confidence is not increasing at the same rate experienced during the summer months last year, it seems people feel assured enough that they will be able to repay the money they borrow on credit cards.

"Consumers are also seeing inflation and unemployment levels falling, the housing market flourish under the help to buy scheme, property prices rising and a general upturn in the country’s key growth indicators. All of these things make people feel better about spending," Becker added.

The report also predicts that total retail spending will rise by 3.4% in the next 12 months to touch £331bn.

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