With 63% of Brits owning at least one credit card, HSBC UK is urging consumers to shop wisely this festive season to avoid the January blues.
HSBC UK’s latest survey of over 2000 people revealed that over half of Brits pay for items such as groceries and fuel on credit cards at least once a week. Promisingly, the research revealed a responsible approach to credit card usage – with just under half (45%) of credit card holders paying off their balance in full every month, and three in five saying they’ve never missed a payment (61%) – highlighting the resilience of consumers in the UK despite the current economic environment.
Please see key insights below:
- Frequent Card Usage: Over 50% of respondents use their credit cards at least once a week for routine purchases.
- Usage Patterns: Analysing HSBC UK’s usage data, customers typically utilise just one fifth of their credit limit (20%), spending around £50 per transaction, with an average retail spend of £656 on their credit cards. Although recent usage has increased, it remains lower than pre-pandemic levels.
- Age-Driven Preferences: Younger adults (under 24) are motivated by rewards, 25-34-year-olds value improving their credit score, while over-35s value protection on purchases.
- Rewards/cashback: 22% of respondents are financially savvy and make use of enticing cashback offers by making payments on their credit cards.
While these findings are optimistic about credit card spending and debt management, there are still many consumers resorting to credit card use to manage their finances and pay off debts, particularly during holidays and at more expensive times of the year such as Christmas.
In season marked by heightened spending, understanding how Brits are using credit cards weekly provides a unique perspective. HSBC’s insights not only shed light on consumer behaviour but also offer practical tips for responsible financial management during the festive period. For more information, please visit: https://www.hsbc.co.uk/credit-cards/tips-for-using-your-credit-card/
