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5. Expenditures by Method of Payment
An analysis of average monthly household living expenditures by method of payment in all households shows that 299,340 yen was paid in "cash" accounting for 93.5% of total living expenditures (320,063 yen) and 20,724 yen was paid by credit card/installment credit accounting for 6.5% of total living expenditures. Cash continued to decline from 95.6% in 1994 to 94.6% in 1999 and 93.5% in 2004. On the other had, credit card/installment credit increased from 4.4% in 1994 to 5.4% in 1999 and 6.5% in 2004.
Expenditures on fuel, light & water charges and education in excess of 99% were paid for in "cash". Moreover, in excess of 95% of housing, medical care and "other living expenditures" as well as over 90% of food, transportation & communication and reading & recreation were also paid for in cash. On the other hand, clothes & footwear and furniture & household utensils were paid for by credit card/installment credit at as high as 25.2% and 17.3%, respectively. The ratio of payment made by "credit card/installments credit" increased in all items as compared to the 1999 survey. (Table V-12)
Table V-12: Changes in Expenditures and Component Ratio by Method of Payment (All Households)
(ii) Ratio of "Credit Card/Installment Credit" by Item
An analysis of the ratio of purchase by "credit card/installment credit" by living expenditures item indicates that video cameras showed the highest ratio at 55.9% followed by accessories including precious metals at 54.5%, men's coats at 51.1%, women's coats at 50.5% and wrist watches at 49.7%. Durable consumer goods and clothing that included relatively high-priced items showed higher ratios of payment by "credit card/installment credit."
Table V-13: Items with High Purchase Ratio in Transactions by Credit Card/Installment Credit (All Households)