TescoCompare.com has confirmed the results of a poll which reveals that approximately half of credit card users in Britain have reduced how much credit they use due to the recession.

However the statistic is not generic for the population, with nearly 35% of those surveyed explaining that they had no intention of reducing the amount of credit they use on a monthly basis.

Out of the half of people who confirmed they were spending less on the plastic, there were a variety of reasons given for their cutbacks. Reasons included clearing debts, contributing more to saving accounts and the wish to use credit cards a lot less.

Many people have been taking initiative in light of the recession by purchasing a prepaid card which only allows the consumer to spend the balance that they topped up on the card via a debit card.
 Some of the benefits of using such cards for consumers have included less risk when online shopping, as the damage that identity fraud can have on a card with a restricted balance is limited. One of the most obvious advantages in these tough financial times though is the way that overspending is impossible on a prepaid card.
 Research is helping people to find the best prepaid cards that are out on the market as an alternative to credit cards. Many people are aware that the prepaid card providers are businesses and so are still on the look out to make a profit.
 Most prepaid cards usually have to be purchased for a small fee online, as they are very rarely found in stores. Some incur a monthly subscription charge, whilst others do not. The scene of prepaid cards changes frequently, which can mean some research is needed to find the best deals which cut out transaction fees and the costs of making a withdrawal from an ATM.
 TescoCompare.com conducted the survey. Debra Williams, CEO of TescoCompare.com and former head of the popular comparison site Confused.com, spoke of her delight that British consumers were taking steps to reduce their reliance on credit.
 “[Consumers] could still save themselves some cash by shopping around for a better deal,” she explained.
 As consumers become very nervy about credit cards in the current climate, many are deciding to stick with the current credit cards they use to prevent any nasty shock. Ms Williams went on to explain how this may not be the best thing to do financially for those who still use their cards, with 50% of those surveyed only ever using one credit card.
 “Just switching to card that pays a lower rate of interest or one which has an interest-free repayment period could cut the cost of borrowing,” she urged.
 For consumers in the times of debt and borrowing, the message is becoming ever clearer: become less reliant on credit if you can and if you can’t, review your financial setup as it could make you better off in your situation.