21% of Britain’s spending goes on credit cards

People are putting a significant fraction of their monthly outgoings on credit cards, according to research from Sainsbury's Finance. Its study found that on average, people are spending over a fifth (21.2%) of their monthly outgoings (excluding rent or mortgage payments) on their cards. Yet almost half (46%) of credit card users receive no loyalty points for their spending.

The survey found that on average men put slightly more on plastic, with typical card expenditure being 22.6% (compared with 19.7% for women) of their monthly outgoings. 18-24 year olds spend less of their outgoings on cards than other age groups, with the average card holder spending 15% of their outgoings on credit cards, and 24% of card holders spending nothing on their credit cards in a typical month.

Sainsbury's Finance is urging people to make sure that they manage their credit card spend responsibly, but also to ensure that they receive decent rewards on their spend. Pensioners were the savviest in finding credit card deals which include loyalty schemes, with only 37% of card holders in this age group reporting that they get nothing from their card providers through a loyalty scheme. In contrast, well over half (56%) of 18-24 year olds get no loyalty points for their card spending.

The Sainsbury's Nectar Card and Sainsbury's Gold Credit Card are two of the eligible Sainsbury's Finance products to offer double Nectar points on customers' shopping, in store, online and at petrol filling stations.  The extra Nectar points are equivalent to an additional 2 per cent, when used in conjunction with a Nectar card, off their Sainsbury's shopping bill.   Sainsbury's Finance customers can earn up to 6% off their shopping by using a Nectar card and holding five eligible Sainsbury's Finance products.

Stuart McKeggie, Head of Sainsbury's Credit Cards said: "There is a lot of competition in the credit card market, so there are some very attractive propositions out there.  Shoppers need to make sure they are making their card work hard for them and are getting a reward every time they shop, just like our double Nectar deal on all Sainsbury's shopping and petrol rewards our customers."

The Sainsbury's Nectar Credit Card offers users an APR of 12.9% on purchases and balance transfers, and double Nectar points on their shopping, in store, online and at petrol filling stations for two years.  The extra Nectar points are equivalent to an additional 1 per cent off their Sainsbury's shopping bill.

Recently, Sainsbury's Finance launched its Gold Credit Card. It has been designed with a range of attractive benefits for consumers when travelling and staying at home and offers a low rate of 9.94% pa (variable) on purchases and includes a number of features such as family travel insurance, no foreign exchange transaction fees, interest-free cash withdrawals (if the whole balance is paid in full and on time each month and no cash advance fees in the UK as well as abroad. It also does not carry a balance transfer fee. It also offers users double Nectar points on their Sainsbury's shopping in-store, online and in petrol filling stations.

The Sainsbury's Gold Credit card which carries a monthly fee of £5 could deliver a value far in excess of this cost at over £300 a year.

To find out more about the Sainsbury's Nectar Credit Card, visit sainsburysfinance.co.uk.