Consumer confidence is at its lowest level for 13 years, meaning that they are less likely to spend on their credit cards.
Two recent interest rate cuts from the Bank of England has not been enough to encourage customers to spend, pollsters GfK NOP found.
Overall confidence dropped to -17 in February, falling further from last month's -13, Thomson Financial reports.
Rachael Joy, consumer confidence researcher at GfK NOP said: "Consumers are feeling a little less confident about their own personal finances and much less confident about the general economy as a whole.
"Housing market slowdown, high fuel and energy prices, and rising food prices…all squeeze budgets, causing consumers to be much less confident about making major purchases."
GfK NOP polls consumers on planned high-value purchases, future savings and their overall opinion on the economy for the index.
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