This new limit brings the UK closer to the limits in use within Europe, where contactless cards can be used for payments up to a limit of 25 Euro.

In the UK, it is estimated that one in seven residents will hold a contactless card by the end of 2010.

Contactless technology allows cardholders to press their card against a sensor to register a payment in over 8,000 stores across the UK. If the card is a debit card, then the money is then automatically deducted from their bank account. Credit card holders will find the amount is automatically added to their credit card bill.

In the UK, adoption of this technology has been somewhat slow, partially due to security concerns. However, in East Asia, the technology is commonplace, and the chip can be found in items such as watches and mobile phones.

With the new limit in place, if the payment is for an amount over £15, then cardholders are required to enter their PIN number. Cashback is not available with these contactless cards.

The increase in limit to £15 is aimed at improving the adoption of the technology by retailers. Demand from consumers has also played a role, according to a spokewoman from the UK Cards Association.

Anyone who receives a new Barclays Visa debit card will by default have the contactless technology built into the card. Around four million contactless Barclaycard credit cards have now been issued.

Brian Cunnington of Barclays said "Contactless technology is undoubtedly the future of payments and we are seeing it grow hugely in popularity. The new higher limit gives customers the flexibility of paying for even more transactions quickly, securely and conveniently via a contactless card payment and will lead to more retailers implementing the technology."

During the recent economic downturn, with low interest rates, the trend has seen consumers paying off their overdraft, loans, and credit card debts instead of saving their money. With the Bank Rate set at a low level, and inflation likely to return in the near term, savers are facing difficult conditions.

For five consecutive months, August – November, consumer repayments surpassed new unsecured consumer credit. During December however, the Bank Of England’s figures show that this trend reversed, primarily due to borrowing on credit cards, which rose by a £195m.

"The small increase in consumer credit is likely to be connected to consumers bringing forward purchases to avoid the VAT increase and a relapse is likely next month," said Andrew Goodwin of Ernst and Young.

The rise in consumer spending on credit cards during the previous month is also likely to be due to consumers paying for Christmas festivities, as reported by The Evening Standard.

In December, total net lending to individuals rose by £1.2bn, double the average of the previous six months, with the vast majority of lending in the form of mortgages.

This is in comparison to just 15% of Brits who used debit cards, the research by Santander found.

Almost half of all UK travellers used debit or credit cards to withdraw their weekly spending money from an ATM while abroad.

For travellers such as these, it can make sense to use a credit card with no foreign exchange rates when using ATM machines abroad.

Those with a Santander bank account get fee-free withdrawals from Santander ATM machines in Spain.

The Zero credit card from Santander can also be a good option, since there is no foreign exchange fee for purchases made on the card.

Prepaid currency cards can also be cost-effective for travelling abroad.

These cards, provided by companies such as Caxton FX, Fair FX and O2, work in much the same way as a traditional debit or credit card except they must be preloaded before they can be used.

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Deputy first minister Ieuan Wyn Jones told the assembly debit and credit cards could be used by the end of the year at the toll booths.

At present drivers must pay by cash or using an electronic scanning device.

Mr Jones added: "I think it's an excellent innovation."

However, before the use of debit and credit cards can be introduced, UK legislation concerning payments for crossings must be amended as it does not currently permit card payments.

According to a spokesperson for the UK Department of Transport, the amendment has been initiated, but is yet to be completed.

Motorists looking for a rewards credit card may want to consider the AA card, which allows users to collect points to be used on fuel and motoring items.

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This card has a typical variable rate of 8.9% APR.

It also offers up to 59 days interest free on purchases to customers who pay their balance in full each month.

There is no balance transfer fee when using the credit card.

Students looking for a credit card that helps them to manage their finances, meanwhile, may want to consider the Halifax student credit card, with a typical variable rate of 17.9% APR.

This has a flexible credit limit and offers free text alerts.

With a typical variable rate of 16.9% APR, charity credit cards from Halifax can be a good option for those looking to donate to charitable causes as they spend.

Users can support the NSPCC or Cancer Research UK, with a donation made when the card is first used and every time users spend on their card.

There is 0% for nine months on purchases on the card.

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This offers fans 0% for 16 months on balance transfers with a 2.98% fee. This rises to 16.6% at the end of the 0% offer.

The advice from Virgin Money comes as the credit card provider revealed England fans will spend up to £319 million if the team goes all the way to the final on July 10th, according to its Football Fans' Inflation Index.

This amounts to an average of £6,399 per fan.

According to Virgin Money, if the team gets through all three Group C games, England fans are likely to fork out a total of £2,445 in flights, tickets, accommodation, food and a new replica shirt for the tournament.

All purchases made on a Virgin credit card between £50 and £1,000 are covered against accidental damage or theft for up to 100 days from the date of purchase.

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A total of 21% of credit cards encourage users to spend to accumulate points, in comparison to 15.4 % last year.

Meanwhile, the number of cards offering cash back rewards has declined to one in 20 in comparison to more than a quarter five years ago, research Defaqto has found.

Those looking for a rewards credit card may want to consider the AA credit card, which allows users to earn AA reward points on everyday card purchases and double points on motoring, fuel and AA products.

Points can then be used to purchase from a range of motoring products or a day or night out.

The typical variable rate on the card is 16.9% APR.

Marks and Spencer also offers a reward credit card, which allows users to collect points to treat themselves in-store.

The typical rate on this card is 15.9% APR.

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The study from Birmingham Midshires' Saving Britain campaign found other reasons Brits went into their savings last year included impulse gifts or luxury shopping, holidays or weekend breaks and emergency home and car repairs.

However, despite these reasons for taking money from savings, the survey found Brits have increased the amount they are saving every quarter by 136% compared to last year.

It found Brits saved an average of £776 in the three months to January 2010, in comparison to the same period in 2009.

Those looking for a credit card with a competitive rate may want to consider the Saga platinum credit card, with a typical variable rate of 11.9% APR.

It offers 0% on purchases for the first nine months from the date on which the account is opened, as well as 0% on balance transfers for the first nine months with a 3% fee.

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The card offers 0% interest for 12 months from the date on which the account is opened when balances are transferred from other credit cards and store cards.

The card could also have advantages for those planning a trip abroad as there is 0% on foreign exchange when using the card.

This could save holidaymakers a significant sum when forking out for hotels, transport, meals and luxuries.

Those travelling abroad may also want to consider using the card to book the holiday as it offers 0% for three months on purchases from the date on which the account is opened.

The typical variable rate on the card is 18.9% APR variable, with no annual fee.

Prepaid currency cards can also be a good alternative for those planning a trip abroad.

These work in much the same way as a traditional debit or credit card except they must be preloaded before they can be used.

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A study by the association found credit card finance fell at the lowest rate of the last year in November 2009 declining by 2%.

Meanwhile in-store credit grew by 1% in the past 12 months, showing it weathered the economic downturn well.

FLA head of consumer finance, Fiona Hoyle, commented: "The FLA figures show early signs that consumer confidence is returning."

However she warned new regulation of credit providers, affecting the cost and availability of credit, could have an impact on the sustainability of recovery.

The figures also suggested spending increased in the run up to the VAT increase on January 1st.

The VAT level returned to 17.5% from the 15% reduction introduced by chancellor Alistair Darling in December 2008.

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The study by PayPal found over one in six of those polled claim to save up for things they want to buy rather than using a credit card as they would have done before the economic downturn.

Shoppers have also become more price conscious, with 58% stating they are more aware of the price of things and 54% claiming they have started bargain hunting more.

The news comes as Britain moves out of recession, with figures showing the economy grew by 0.1% in the last three months of 2009.

The slight increase follows a contraction over six consecutive quarters, marking the longest period of decline since records began in 1955.

Marketing Director of PayPal UK Mark Hodson commented: "Although we're now technically out of recession it's going to be some time before consumers start feeling better off and in the meantime we're likely to remain savvy shoppers."

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The report by the UK Cards Association agrees with the government that people paying off their credit cards should be able to pay off their most expensive debts first.

According to the association, the majority of borrowers should be able to benefit from this new system.

However, it argues that those who make only the minimum repayment each month for a year should not be able to pay the cheapest debts first, but rather the lender should decide which debts are paid.

This would affect around two million cards, 3.1% of the total number issued.

However, Nationwide and Saga have both argued card providers should always allow credit card holders to pay their most expensive debts first.

There are currently 30 million credit card holders in the UK, holding a total of 66 million cards.

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Consumer spending in December 2009 was a third less than the 1.1% rise expected by analysts, marking the weakest December retail sales figures since 2007, Travelex noted.

The sterling fell against several currencies following the news, the non-bank FX payments specialist noted.

Mark Bolsom, head of the UK trading desk at Travelex, commented, "Whilst our labour market is steadying, the downside is that with inflation increasing, prices are going up, and our earnings growth is steadily weakening - which therefore is affecting our spending habits on the high street."

He added that credit card and other spending is affected by uncertainty about people's financial futures, which means they cannot afford to spend extravagantly.

Those planning a trip abroad may want to consider tracking exchange rates to lock into a good rate using a prepaid currency card before they travel.

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Called Barclaycard Freedom, the loyalty scheme will allow cardholders to earn rewards at an unprecedented number of shops restaurants and online outlets.

It will be open to a large number of small and medium retailers for the first time.

The scheme promises to be easy to benefit from, as cardholders will not have to do or pay anything to join, nor will they have to replace their existing card.

Reward points will automatically be issued to those who use their Barclaycard at particular retailers, amounting to 1% on most transactions.

Cardholders can choose to redeem their reward money whenever they choose.

Sarah Newman, managing director of Barclaycard Freedom, said: "The breadth of Barclaycard Freedom offers customers the chance to earn Reward Money when they do their weekly shop, go out for a meal or shop online."

Barclaycard offers many credit cards including the platinum gold and Goldfish cards.

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More than 12 million (36%) of British consumers plan to use their credit card this January on essential purchases such as grocery shopping, a rise from 30% of cardholders who were asked last year.

The research found 10% of customers are looking to spend more money through credit offers in the next 12 months, while 45% do not plan to repay their credit card debts in full at the end of each month.

Az Alibhai, head of lending at the Post Office, said the continuing trend for consumers to "rely on their cards for basic day-to-day purchases is a concern".

Credit cardholders are advised to set up direct debits rather than pay off the minimum amount of their bill each month, as this reduces the amount of interest paid.

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The Welsh capital replaces London at the top of the annual Card Fraud Index maintained by CPP.

London remains a hotspot, with 35% of adults having been affected by the crime since 2007, followed by Norwich with 30%, Southampton with 28% and Leeds with 27%.

Incidents of credit card fraud have increased by more than 6% over the last two years, leaving another 2.75 million British adults victims of fraud. The average sum involved with fraud was £590, but one in six victims (16%) reported a loss of more than £1,000.

Online fraud accounted for a third of those affected, while 17% of cases involved the use of fake cards, at cash points or elsewhere.

The CPP study revealed that one in eight cardholders write down their card details, while 10% allowed other people to take money out at ATMs on their behalf.

Another 16% had allowed a shop assistant to take their credit card out of sight, leaving them vulnerable to fraud.

CPP found 43% of cardholders only realised they were fraud victims when they were contacted by their bank. To protect against fraud, cardholders are being urged to regularly check their bank accounts and statements to ensure all payments made are recognised. ©

The inControl feature enables cardholders to set personalised controls online, and receive text alerts or emails as soon as they have reached their budget limit.

Controls can be set to trigger alerts or block transactions made online or abroad with the credit card. It also allows cardholders to integrate new and existing credit and debit cards with prepaid, PayPass and mobile payment products.

Barclaycard UK Foundation & Partnerships managing director Chris Wood said the MasterCard inControl option will give customers peace of mind.

"Personal security and the ability to keep a tab on your spending is top of mind for our customers," he said.

The inControl service allows credit card holders to set budgets for particular types of spending and specify where, when and how payment cards linked to their accounts may be used.

Customers can also get single or limited-use virtual card numbers to give them protection and control when shopping online.

Transactions that are not approved by the customer's control settings can be immediately declined by banks or can be approved via a text message to ask the credit cardholder to personally approve the payment.

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Gossip websites are speculating as to whether the purchases did not come under the terms of her conservatorship budget, which allows the singer a credit card limit of $1,500 a week.

As the credit card she used had the name of her bodyguard on it, a shop clerk disputed her attempted purchase. She reportedly told the clerk that as her bodyguard is an employee of her company, she was entitled to use his card.

Meanwhile, considerably less famous shoppers are being urged to protect their identity details to reduce their chances of being credit card fraud victims.

In 2006, the government estimated the annual cost of identity theft to the UK economy is £1.2 billion, or £25 per adult.

Consumers can protect themselves by shredding old credit card statements rather than throwing them away with their name and address intact.

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Lenders overestimated the number of people defaulting on unsecured credit, but the amount lost through defaults rose in the same period, the Bank's Trends in Lending report said.

As a result, the cost of interest on credit card borrowing has increased.

Default numbers are lower than expected due to a fall in unemployment in the three months to November, resulting in more customers looking to pay off their unsecured credit bills.

The Bank was told by lenders that this trend is expected to continue.

Individuals looking to limit the size of their credit card debts can also look to swap credit card provider, taking advantage of any 0% balance transfer offers.

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Criminals are finding ways to sidestep advanced protection offered by chip and pin technology and are looking to the internet in their bid to steal credit card details, the group suggested.

CPP card fraud expert Sarah Blaney said the next obvious stop for fraudsters was online, due to the rise in people shopping over the internet.

But she pointed out a few ways for shoppers to protect themselves from credit card fraud: "A lot of sites that are shown to be fraudulent have got basic spelling errors and things like that, which you wouldn't expect from a normal retailer's site. If you think there is anything suspicious then just leave the site immediately," she advised.

According to CPP research, 26 per cent of people have been the victim of credit card crime at least once. Of those who have been targeted in the last two years, 17 per cent of victims lost their details through chip and pin fraud, compared to 32 per cent who were hit by online criminals.

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