Cheques No Longer Popular
Banking data has revealed that over the past year the popularity of cheques has decreased considerably.
According to the Association of Payment Clearing Services (APACS), 2007 saw a drop by 9% to 1.6 billion in the number of cheques actually used. It is said to be the fastest rate of decline recorded since 1991 when cheque use first became overshadowed by the credit card.
Most high street retailers, including Marks and Spencer and supermarket giant Tesco, have gradually stopped accepting cheques as a form of payment. Soon the traditional payment method of writing a cheque will become a thing of the past as cash along with debit and credit cards take over completely.
In addition, many utility companies have campaigned hard in an attempt to dissuade their customers from paying their bills by cheque. Although many elderly people still use this form of payment as a preferred choice, those customers willing to pay by direct debit are now being offered a discount.
However, despite increased card use it would seem that over the past couple of years people have become much more aware of how easy overspending on a credit card can be. In 2005 the outstanding amount left unpaid each month on credit cards reached an alarming average of £57.4bn.
Since then authorities such as the Bank of England have issued warnings regarding the dangers of having too much debt. Today card users have adopted a much more sensible approach to their spending habits by paying off more on their balances than they would have previously accumulated.
Last year the average monthly amount outstanding on UK credit cards went down to £54.2bn. The overall repayment ratio on new borrowings has also greatly improved, putting an end to the UK's 'borrowing binge' era which kicked off in the year 2000.
Published on February 15, 2008
Digg | 
del.icio.us | 
StumbleUpon | 
Reddit | 
Yahoo! | 
My favourites
Latest Finance Articles
Darling's Budget Report Highlights
Chancellor Alistair Darling delivers his first Budget Report yesterday. Highlighted in this article are some of the main points... Read More
March 13, 2008
Lending Falls Again Says CML
The amounts borrowed by first-time buyers and home movers continue to drop as the credit crunch takes further grip on the UK mortgage market. Remortgage activity is on the increase as many switch from fixed-rate deals to tracker mortgages in anticipation of further base rate decreases from the Bank of England... Read More
March 12, 2008
10 Tips To Improve Your Credit
Now more than ever our credit rating affects our ability to borrow credit. Here are 10 tips to help you improve your credit score... Read More
March 7, 2008
Interest Rates Kept At 5.25%
Yesterday, 6th March, the MPC decided to keep the base rate at 5.25 per cent. This decision was to be expected as the Bank focuses on the pressures of rising inflation and a slowing economy. Analysts are predicting another cut to 5 per cent to happen in May unless economic conditions weaken substantially. Whilst some feel the MPC shouldn't wait too long before the next cut, many agree with yesterday's decision... Read More
March 7, 2008
20 Per Cent Of Homeowners Fear Repayments
The UK's financial watchdog, the FSA, published a survey of over 500 mortgage holders which revealed 1 in 5 are worried about being unable to keep up with their mortgage repayments. It is estimated that 1.4 million fixed-rate or discount deals will expire this year raising monthly repayment amounts. Twenty five per cent of those surveyed admitted they had no contingency plans to meet these costs... Read More
March 6, 2008
Refer a Friend
Why not tell a friend about Money Outlet? Click here
