Shoppers `choosing debit cards over credit`

The latest figures from UK payments association APACS have shown that more consumers are relying on debit cards, rather than credit cards, to fund their purchases.

The organisation reported that plastic cards accounted for 66% of all retail spending last year, and that of these transactions, two thirds were made by debit card.

At £116.1bn, debit card spending in 2008 greatly exceeded the £60.7bn spent on credit cards. Cash spending accounted for £86.3bn spent by consumers in 2008.

The figures may reflect the shrinking availability of credit in the economy, as well as consumers` reluctance to get into debt to fund purchases. Credit card spending was £0.4bn lower in 2008 than it was in 2007, although it was still higher than in both 2005 and 2006.

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