PEOPLE are likely to be reaching for their credit cards this summer, predicting they will spend 35 per cent more on their plastic than last year, new research claims.

Consumers think they will put an average of é1,136 on their cards between July and September, compared with a total of é839 during the same period of 2005.

But despite the year-on-year jump in spending, people still plan to spend eight per cent less than they did during the previous three months, according to Morgan Stanley.

Increasing

The main areas in which people are increasing their plastic spending are on their home, car and travel.

People expect to put a total of é329 on their credit cards relating to their home and car during the three months to the end of September, compared with é194 last year, while spending on holidays is set to increase to é331, up from é221.

But spending on clothes and shoes is actually set to fall to é82 during the three months, compared with é89 in 2005.

Men will continue to spend more on their credit cards than women at an average of é1,296 during the summer months, nearly a third more than women's é976.

Patrick Muir, marketing director at the Morgan Stanley Credit Card, said: "The increase in spending levels year-on-year demonstrates the rise in comfort levels in buying both big ticket and everyday purchases on credit cards."

YOUGOV questioned 2,000 people during July.