In 2011, UK consumers used their debit and credit cards, while check and cash payments declined. Use of good and bad credit credit cards remained steady in number and value of purchases.
During the third quarter of 2011, both the value and number of debit card purchases increased by more than 12 percent compared to third quarter 2010.
Those with good credit are not expected to increase charges either and both groups will make an effort to repay balances quicker.
If a recession does resurface during 2012, cardholders are expected to reduce their spending and take additional steps to decrease their debt.
With their attention set on risk, credit card issuers will continue to increase interest rates. Throughout the financial crisis, average interest rates on credit cards increased, reaching over 19 percent by May 2011.
During the second half of the year, rates plateaued and then slightly decreased. If unemployment levels continue to increase during 2012, providers are expected to increase interest rates due to the threat of additional account defaults.
Consumers with good credit have benefited from stiff competition, being offered longer interest-free periods for balance transfers. Both Halifax and Barclays are currently offering 22 months free of interest for transferred balances.
However, experts predict that some of the most competitive offers may become history in 2012 as providers attempt to recoup costs.
More UK consumers with both good and bad credit cards are expected to use their cell phones to make contactless payments.
According to the UK Cards Association, card providers and operators of mobile networks will provide smartphone apps for making payments directly from a credit or debit account.
Soon, cell phones will eliminate the need for an actual credit card, said the association.