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: spiralling, person, type, consumers, budgeting, monthly spending

Latest energy hike provides ‘green light to switch’

With the last of the big energy suppliers announcing an increase in its premiums consumers now have the “green light to switch” providers, one financial expert has claimed.

Money advisers Which? stated that spenders ensure they have the best deal when it comes to their mobile phone tariff and this should be no different for their energy bills.

Scottish and Southern Energy announced last week that its prices for electricity customers will rise by 14.2 per cent on average.

Siobhan Parker of Which? said that this latest price increase is the “green light to switch”.

“Everyone’s feeling the post-budget pinch and making sure you’re getting the best deal for your home energy is a smart and easy way to take some of the pressure off,” she continued.

Which? said that customers should use their buying power to show they mean business, and switch to a cheaper supplier.

Meanwhile, Scottish and Southern Energy increases mean that prices for gas customers will increase by 15.8 per cent.

Home energy bills have now smashed the £1,000 per year mark for many households.

Tags: Scottish, Everyone, business, energy, southern energy, pinch, best deal