Cash makes a comeback

Posted 2008-04-22

A new survey has found that consumers are increasingly paying for goods with cash as credit card debt rises.

Figures from the British Retail Consortium (BRC) show that cash transactions accounted for 60 per cent of purchases in 2007.

According to Stephen Robertson, director-general of the BRC, shoppers now feel less comfortable spending money which they dont have and this has seen a resurgence in cash usage.

"Hard up customers are increasingly reluctant to spend money they havent actually got in their hands. While total retail spending continues to grow, there is a widening gap between the amount spent in cash and the amount spent using cards," he said.

The BRC also criticised card companies for the charges shoppers incur when using plastic, which is 34p as compared to two pence for cash purchases.

In related news, the London Retail Consortium revealed a two per cent increase in like-for-like sales compared to 2007.

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