A recent survey has highlighted that this year British people are using cash to pay for gifts more than they are their credit cards. The cash machine network run by the company LINK have said that compared with last year there is then a 10% increase on the amount of cash people are withdrawing.
John Howells is the Chief Executive of the company and he said, “People are most likely to spend cash on food and groceries as well as entertainment. At this time of year cash spending also increases on other items as people are buying gifts for friends and family.”
Researchers recently indicated that the use of cash instead of plastic encourages people to be more responsible about their spending. Generally, if people are using cash to pay it means they are paying more attention to how much is leaving their bank account. This has the effect of reducing debt and making people more responsible shoppers.
Recent figures from the Bank of England also shown that generally people are paying off their debt rather than getting into more of it. Visa have also announced that the amount people are spending on their cards has fallen and another survey has shown that only around one in every five people intend to do most of their Christmas shopping with their card.
A spokesperson for the British Bankers Association has said, “People are facing uncertainty about their employment and borrowing is being limited by households so it is not so surprising people are using their cards less.”