Brits turn to credit cards three weeks after getting paid

It has been claimed in a recent report that millions of Brits are able to manage for around three weeks or so after getting paid before they are forced to turn to their credit cards. The reliance of many Brits on credit cards has increased as a result of soaring living costs, spiralling bills, frozen wages and government cutbacks. All of this has led to people being unable to manage as well as they used to in terms of their finances.

Whereas in the past consumer wages may have lasted more people for the full four week before the next payday came around, many are now finding that it lasts for only three of the four weeks, leaving them with a week where there money has run dry. This is the point where millions of Brits are turning to their credit cards to fund their living costs for the final week before payday comes around.

The research showed that around a quarter of consumers in the UK turn to their credit cards once they have run out of cash in their current accounts. The majority tend to run out of cash around three weeks after getting paid, at which point they turn to their credit cards. However, around one tenth of those that have to subsidise their monthly spending with a credit card are only able to manage for fifteen days before having to turn to their cards.

An official involved in the research said: “With most of the population feeling the pinch at the moment, it’s no surprise to see so many people reliant on credit so early in the month. However, unless you plan this properly and know you’re able to pay off your balance, this can be a dangerous trap to fall into. If you’re the type of person who doesn’t pay off their card every month, you need to look at the steps you can take to reduce monthly expenditure before turning to credit products. Budgeting is crucial at the moment and people will be amazed at how much cash they can free up each month by simply sitting down and going through their finances.”

Tags: expenditure, monthly spending, consumers, budgeting, person, pinch, spiralling, type

A holiday abroad could be cheaper than a holiday in the UK

With the recession still in full swing, and the ongoing financial crisis having seriously affected the finances of many households, it is little wonder that a holiday abroad is the last thing on the minds of many consumers. Read more

Tags: Holiday Watchdog, GBP, cheap holidays, uk holidays, person, holiday abroad, Leisure, uk holiday

A great way to save money on your holidays

For most households in the UK money is tight due to the effects of the global credit crunch, higher living costs, soaring inflation, and rocketing bills. However, even when finances are looking a bit sorry for themselves many of us still want to try and find a way to get away from it all by booking a holiday, especially with things as stressful as they are in the current climate. Read more

Tags: official, uk, flexibility, holiday costs, travel, description, holiday

Pet insurance ‘can save owners money’

Pet insurance is an important consideration for any pet owner regardless of whether an animal is healthy or not, a leading pet charity claims.

Jenny Davies, press officer for pet charity PDSA, pointed that insurance can provide cover for unexpected veterinary fees and an owner’s peace of mind.

“It is also an important consideration when thinking about the owner’s liability for their pet’s actions, such as damage to a person or property,” she said.

According to the charity, it is also important for pet owners to find out as much as possible about the breed of animal they have as this can play an important factor in how much vet’s fees come to.

Ms Davies said this was important as certain pets are more susceptible to certain conditions.

Meanwhile, recent research from the PDSA showed that one in three dogs and one in four cats are overweight

The data was collected from over 5,000 dogs assessed on the charity’s PetCheck vehicle and over 500 pets assessed in PDSA’s PetAid hospitals.

Tags: jenny davies, Insurance, PDSA, four cats, certain conditions, Personal life, person, Pets

Life insurance with mortgage ‘good for parents’

People with dependants are advised of the benefits of getting life insurance when taking out a mortgage.

According to Key Financial Consultants Ltd, many first time buyers neglect to take out life insurance due to other expenses.

It advised that, as life insurance is cheaper the younger the applicant, it would be beneficial for people to take it out when getting a first mortgage.

Managing director of the independent financial advisory firm, Dominic Mansley, commented: “If it’s a single person looking to buy a flat by themselves, and they’ve got no dependants, then we wouldn’t really worry about a lack of life cover.

“However, if it’s a young family with children then we would very much make them aware of the need for [life insurance].”

Furthermore, he said, if people fail to take out life insurance along with their mortgage, they do not tend to take it out later.

The Association of British Insurers states that as many as one in every three Britons does not have life insurance.

Tags: Key Financial Consultants, three britons, Key Financial Consultants Ltd, family, person, first time buyers