Dosh Express Assesses Statistics Stating UK Consumers Turn to Debit Cards to Save Costs

Share Article

According to a report by the UK Cards Association published in the Financial Times, credit cards have fallen out of favour with British shoppers, as consumers eschew high interest rates in favour of sensible spending and turn to debit cards.

Between 2000 and 2005 credit card use in the UK accelerated

Some 40 years after they were introduced, credit cards have suffered a reversal in popularity after years of growth. Figures from the UK Cards Association, passed to the Financial Times, reveal that debit cards outnumber credit cards, indicating a big change in consumer attitudes to spending and borrowing during the past decade.

Between 2000 and 2005 credit card use in the UK accelerated, as high consumer appetite for borrowing and fierce competition from providers drove up demand. The number of cards in this period rose from 47m to 70m. But in the middle of the decade borrowers re-thought their spending habits, and reduced their credit card use years before the credit crisis came along.

Paul Rodford, head of card payments at the UK Card Association, said no single factor could explain the falling popularity of credit cards. The change, he insisted, had been led by consumers rather than regulatory change. “This was not some sixth sense anticipation of the crisis to come, but rather a variety of things,” Mr Rodford said.

“By 2005 the market was saturated, and there was an increase in negative coverage from the media surrounding debt and the costs associated with credit cards. By the end of the decade the number of credit cards in the UK fell to 55.6m, and outstanding balances were £10bn lower. Banking customers have turned to debit cards. Spending on debit cards doubled in the five years to 2010. By 2010 some 84m cards were in circulation in the UK. Those consumers who still use credit cards have become more cautious about outstanding debts. Last year almost two-thirds of borrowers paid off the full sum owed each month, compared with about half in 2005."

Dosh Express is the Honest Lender, helping you get to payday. Based in Castle Donington, in the Midlands, the company's mission is to provide a great lending service to thousands of our happy customers and be a great place of employment for our staff. Dosh Express, the trading name of Dosh Express Limited, is a consumer lender offering short-term payday loans, is a member of the Consumer Credit Trade Association (CCTA), and is licenced and regulated by the Office of Fair Trading. Please visit to apply for a loan, and if you are approved cash is usually deposited in your account within minutes, subject to status.

Share article on social media or email:

View article via:

Pdf Print

Contact Author

Stephen Reay
Visit website