Low interest rates 'have helped put credit card spending above saving'

Credit card spending has been chosen over saving in the past due in part to low interest rates, it has been suggested.
Because interest rates have been very low, there has been little incentive for people to save money, director at motleyfool.co.uk David Kuo stated.

However, it is important that people do consider the long-term implications of saving money, the director continued.

He added that some people are beginning to realise that it can be worth saving money even if there are low interest rates.

People must also understand, he noted, that whereas in the past they might have put aside £95 if they wanted to save £100 and assume the remaining £5 would be made in a year on interest, now they must see that in order to save £100 they must put aside the full sum.

However, many consumers could decide to spend a bit more this year than last, the director of the Centre for Retail Research professor Joshua Bamfield has predicted.

He said that many consumers have had "12 months of deprivation" and are looking to spend more this Christmas.