Brits are preparing to increase their credit card spending during the 2006 festive spending season, according to the latest results from the Morgan Stanley Card Index. Between October and December 2006 the average Brit will fork out £1,270 on their credit cards.

Hot on the heels of the Datamonitor report, showing that spending on cards has doubled in the past five years, the Morgan Stanley Card Index findings reveal that Britons are planning to spend 35 per cent more this Christmas than for the same period last year (£940 in 2005). This is also a 12 per cent increase on spending in the previous quarter, July to September 2006 (£1,136). With repayment on credit cards also steadily increasing, the findings show consumers are using credit cards sensibly to manage their spending.

The main area of spending on plastic in the run up to Christmas is on the home and car (£344) closely followed by groceries (£339); both accounting for over half (54%) of planned expenditure. Spending on holidays and travel (£251) is also set to be a major area of spend over the festive season, as cardholders jet away for some winter sun or set out to visit friends and families. Christmas parties are also on the cards this year, as predicted spend on socialising is £194, more than double the amount predicted in the previous quarter (£93).

Men are leading the way when it comes to spending this Christmas, shelling out a quarter more then women (£1,417 compared to £1,131). The biggest area of spend for men is on the home and car (£402 on average), whilst the priority for women is on groceries this Christmas (£312).

The Morgan Stanley Card Index, which is the only study to look at predictions on card spending, asked a GB representative sample of 2,000 adults how much they intend to spend on a variety of items between October and December 2006.

Patrick Muir, marketing director, the Morgan Stanley Credit Card, comments: “The findings of our research are the first to give an impression of an increase in confidence for Christmas 2006 – a time when credit card spending traditionally rises. With repayment figures steadily increasing, this is a good sign for both consumers and retailers alike.

“People are increasingly comfortable with using their credit cards to buy everyday items such as groceries, as well as for larger purchases like their Christmas gifts.

Cardholders are also becoming increasingly savvy when it comes to being rewarded for the purchases they make and with a raft of schemes available, from collecting points to cashback, spending on credit cards is becoming more appealing than paying by other methods.”

The over fifties plan to spend the most over the festive period (£1,528), three times the amount spent by those under thirty (£578). The highest area of spend for those over fifty is on groceries (£578), suggesting their families will be lucky enough to enjoy a lavish Christmas feast.

Londoners will spend the most of all regions in the run up to Christmas, putting £1,467 on their plastic, whilst people in the North will spend the least (£1,037).

Those in the South of England will spend the most on socialising (£301) during the Christmas festivities whilst people in the Midlands and Wales prefer to stay in, spending the most of any region on home entertainment over the coming three months (£128).