For The First Time In History, Credit Card Sales Topped Cash Sales

Category: Finance, Credit.

According to APACS( Association for Payment Clearing Services) , in 2004 we Brits charged just about �269bn on our plastic. For the first time in history, credit card sales topped cash sales.

Cash sales for the same period totaled just about �268bn. If it wasn t official before, it is now- credit card UK spending is a way of life. Living on the never- never has become living for today. What has made them so popular in the UK in just a generation? Today s culture is more mobile- both socially and financially. With that comes the realisation that debt is less a burden of shame than it is a payment in advance from tomorrow s wealth. We ve come to expect that we ll have more to do with tomorrow than we have today.

We re richer faster than ever before in history. As a result, we re feeling richer and more able to take on some debt in the interests of living well NOW. It s a hurry hurry get it now culture that s fuelled in part by watching housing values soar while interest rates remained low. And then there s the American influence. In the mid- 90s, American lenders set up shop and started doling out easy credit terms and quick turn- around times on credit card and loan applications. It has to be said. With the advent of online applications and scoring checks, what used to take days now takes minutes.

Simply this- in less than a decade, more fluid credit, aggressive marketing and more affluence set the stage for plastic to become an every day necessity rather than a luxury afforded the precious, privileged few. All right, you re saying- what s all this got to do with the popularity of credit cards in the UK? Credit cards offer advantages in so many ways that once they became easier to acquire, we ve quickly made up for lost time. Using a card allows you to make a purchase now rather than wait till you ve saved up for it. Increased purchasing power. If you re realistic about what you can afford, this isn t living beyond your means- it s tapping into your future savings. A credit card allows you to make purchases in places where cash is difficult to handle- over the telly or online for instance.

Ease of purchase. Protecting your purchases. It s far easier to get reimbursement with that proof. If your purchases are lost or damaged, you have proof from your credit records that the purchase was made. In addition, many card issuers insure purchases made on their cards for up to a year. Using credit wisely builds a strong credit history- a very good thing when you go to apply for a mortgage or car loan. Building your credit history.

Quick cash for emergencies. Ease of record keeping. Cash advances make it easy to get cash in a real emergency- without resorting to bank loans or begging relatives. Regular statements give you a handy record of all your purchases for verification when you need it. 1 Credit card benefits. It s easy to apply for a credit card online. Cash rewards and cash back and discount programs from various card issuers can save you a good bit.

There are some really good comparison sites online where you ll find listings of credit cards that make it easy for you to compare them against each other. If you re looking for the best credit card UK issuers. have to offer, you ll be able to find all the information you need at some really good online comparison sites.