Consumers unaware of extra credit card spending

Many British consumers underestimate how much they spend on credit cards according to latest figures.

Research from Egg Money, which provides savings accounts, shows that on average, UK consumers believe they spend £418 on credit cards each month, whereas the Datamonitor Plastic Card report 2005 has this figure at £775.

This means the total spending figure for the year is £437 billion, over £200 billion more than the total of what consumers think they spend, £236 billion.

Andy Deller, Egg’s chief marketing officer, said the research "clearly indicates that the increasingly complex nature of our finances means it is often hard to keep track of how much we are spending".

The Egg research cited the problem that the many different ways of buying goods and services can cause.

Consumers can end up spending money they think is theirs, only to have to pay a forgotten Direct Debit order later in the month which takes them over their limit and it results in them suffering from needless banking charges and costs.