Debit cards have officially taken over cash! The historic milestone was reached in August, when the amount of spending via debit card, at £272 billion, exceeded the amount of cash spending, at £269 billion.
Debit cards are clearly the preference of the British. The plastic cards surpassed cash, according to experts, because they are simply easier to carry than cash and consumers clearly prefer them, except in very small transactions. Debit cards have already surpassed the use of credit cards and cheques.
The number of total debit card transactions rose by 10 per cent from July through September, when compared to the numbers for last year. Debit card use was triple that of credit card use and 11 per cent more money was spent on debit cards than last year, during the same period.
Credit card debt, on the other hand, has fallen to its lowest since 2003. Some say this is representative of greater responsibility on the part of consumers who learned their lesson through the recession. Others say it is merely fear of increasing interest rates.