UK payments association Apacs has stated that British DIY enthusiasts are using debit and credit cards to spend billions of pounds in shops to help them complete a wide range of domestic projects. Apacs also revealed that stores received around £12 billion worth of DIY trade from debit and credit card transactions.

The organization estimated that ,on average, individuals were spending around £70.00 on purchases for DIY jobs.

A spokesperson for the association said that the use of plastic card payments has dramatically increased over the last 10 years. British consumers tend to favour this method of purchasing as it is relatively straightforward and convenient.

However, it is expected that the continuing economic downturn ,which may see the UK’s unemployment figures rise to over 2 million in the near future, may result in the curbing of the spending habits of those who wish to use their money on DIY projects.

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The Newcastle Building Society ( NBS ) has claimed that the use of prepaid cards has increased amongst those people who currently have individual voluntary arrangements ( IVA’s ). The firm predicted that the current rise in this type of card’s popularity will see prepaid card use rise by 10% by 2012. It was also estimated that this alternative to the credit card may see its numbers increase to nearly 10.9 million by 2009.

The NBS stated that prepaid cards are becoming increasingly popular in the UK because they are not tied to bank accounts and can offer protection for those who wish to carry out their financial transactions online or for those who are travelling abroad. The use of these cards can also assist Britons to deal with difficult financial situations and debt management.

Prepaid cards also appear to be particularly appealing to parents who want to offer their teenage children a limited spending option.

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Research that was conducted on behalf of American Express Insurance Services suggests that nearly 50% of the UK’s adult population will alter their savings habits in a bid to beat the current credit crunch. The survey showed that British consumers will not hesitate to reduce their savings in order to deal with everyday expenditure on household bills and items. It was also revealed that nearly 25% of respondents will consider defaulting on current debts in order to ensure that they can deal with a poor financial situation.

Around 20% of people said that they would also have to cut contributions to Child Trust Funds and nearly 15% would discontinue payments into their pension funds. Over 10% of those questioned stated that they would not make any further payments to their credit card bills ,whilst around 12% would stop their monthly car repayments.

The ongoing squeeze on household budgets would also see around 30% of people discontinue payment protection and health insurance policies.

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Barclaycard has revealed that it plans the eventual eradication of credit card products by allowing consumers to purchase products and/or services with eye and fingerprint recognition technology. The finance firm is said to be investing well over £1 million in payment systems that do not require human contact, such as the typing in of passwords. The first example of this technology, which is called OnePlus, will be rolled out across 9000 outlets by the end of 2008.

A company spokesperson stated that it wishes to take the lead in shaping the way in how consumers make payments. He added that biometrics and the use of other mobile applications are the future of all payment systems.

The company has also reported that that it is researching paperless ticketing systems which could revolutionize how people pay for cinemas and train use. The United Arab Emirates has already hosted a new type of cash dispensing machine where customers have to use their fingerprints to withdraw money

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Money-transfer firm PayPal has carried out research which suggests that British consumers are using their credit cards to cover the costs of everyday living despite the current credit crunch. The research also revealed that the current economic situation has forced nearly 80% of British people to set a monthly budget.

Additionally, nearly 16 million people still managed to go over their budget by around £120 and one fifth of these have had to turn to their credit cards to help them out. PayPal said that many consumers are no longer spending significant amounts of their budget on items such as clothing and engaging in social activities.

A spokesman for the company stated that many British people still say that they are attempting to stick to their budgets. However, the reality is that many individuals and/or families are having to use their credit cards to get them out of tight financial situations.

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The Halifax Bank has announced that it will be launching its latest credit card scheme for current and new customers. The new credit product means that consumers can benefit from an extra month of 0% interest on purchases and balance transfers.

The bank stated that it was now able to offer a credit card that had an interest free period that lasted for a total of eleven months. The firm also added that customers will find that they could save hundreds of pounds.

Meanwhile, Apacs, the UK payments association, reported that there were around 1.8 billion purchases during the April to June period, which amounted to nearly £93 million of transactions

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British payments association, Apacs, has said that the UK’s credit balance has risen by £1.8 billion in the year ending June 2008. This represents an increase of 7.8%.

Apacs figures also show that Britons had spent nearly £93 million by the second quarter of 2008, an increase of 7.5%.

The organisation also released data that showed that over the previous seven years there was a 500% increase on the number of consumers who were using online banking facilities.

However, Apacs warned that consumers would need to be more security conscious when using the internet to conduct financial transactions. There has been a significant rise in the amount of criminal activity associated with the online and offline use of credit cards.

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The Alliance and Leicester has warned consumers ,who are using store cards, that they may be paying up to three times more interest than current personal loan rates. The bank has claimed that nearly a quarter of all UK consumers own a store card and are being charged around 26% interest.

Unfortunately, this high rate of interest may cause a large amount of consumers to fall into debt. Those who find that they have accrued store card debts should consider seeking alternative ways of repayment.

Industry analysts stated that store cards are widely considered to be one of the most expensive credit products on the market.

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Chip and Pin card owners are being warned by Police that fraudsters have found a novel way to steal their personal details and bank account information . Criminals are thought to be stealing chip and pin machines from shops in order to plant information scanning devices.

Once the card readers have been fitted with this device they are then returned to the same shop so that the criminals can collate information about the shop’s customers. The information is then used to duplicate new cards which are used to withdraw cash abroad.

The fraudulent practice came to light when Police raided a premises in Edgabston, Birmingham. The property was ,allegedly, being used as a card skimming factory. It is thought that the criminals often team up with shop members to carry out the theft of information.

Previously, industry analysts had hailed this type of card as more secure than any other type of debit or credit card.

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Those consumers who are seeking the best credit card deals to help them beat the current economic downturn will be pleased to know that leading credit firm ,Capital One, is still providing its 0% purchase card and balance 0% transfer products.

The finance company has announced that its Capital One Balance Exclusive will now retain its 0% balance transfer rate until December 2009. Additionally, Capital One Platinum is offering a 0% rate on purchases until November 2009.

If you have a credit card debt you should consider taking advantage of the Capital One Balance Exclusive. With this offer, you will benefit from a deal that allows you to reduce your debt with the knowledge that you will not have to pay interest for the service. Always be aware that this product is best used when attempting to reduce your debt. It would be unwise to use this credit card to increase your spending, which will ultimately result in an increase in your current debt.

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