The need to pay for other expenses was the first reason given for the change, followed by reluctance to pay the entire amount. In their view, the late-payment interest-rate charges were acceptable, the research paper said.

In July, the number of credit-card accounts fell sharply by 31,039 from the previous month. This was due to card revocation by issuers as cardholders missed payments and customers closing accounts because they felt they had too many cards.

Half of the respondents said they still paid their entire bill when it was due.

Those who pay more than the minimum 10 per cent of the amount due, but less than 50 per cent, accounted for 18 per cent of the respondents; those who pay the minimum 10 per cent represented 13.3 per cent; and those who pay 5 per cent made up 9 per cent.

The paper said 7 per cent of the respondents paid more than 50 per cent of the amount due and 2 per cent missed payments some months.

It said that 69 per cent of the respondents claimed never to have withdrawn cash with their credit cards because they had no need for extra money and they did not want to pay fees and interest.

Expenses for emergencies were the main reasons for cash withdrawal, the research said.

It also noted greater caution among card users, seen in the fact that spending for products of lesser necessity, such as clothes, travel, entertainment and recreation, had declined.

However, spending on consumer products, fuel and utility bills had risen.

The survey found 34 per cent of respondents held more than one card in the hope of getting discounts from merchants and accumulating reward points. However, 14.6 per cent said they did so for "money management" due to the higher cost of living.

THE NATION