BANK ACCOUNTS, CREDIT CARDS
Brits turn to credit cards as energy bills increase
The increase in gas (17.4%) and electricity bills (10.8%) are already taking their toll on the finances of the British population. New research reveals that, as prices increase, more Brits rely on credits cards and overdrafts to pay the bills.
On average, British consumers are facing an extra charge of £155 per year to the cost of energy bills. According to a poll conducted by a comparison site, these extra costs are making many British families turn to alternative sources of income.
A majority of 71% of British consumers will need to turn to their savings, credit cards or overdrafts to fund rising fuel bills, according to the research.
Specifically, 42.4% of those surveyed said they will have to dip into existing savings, 16.9% plan to use their overdraft more regularly and more than one in ten (11.6%) said they will have to put more on their credit cards.
"Those turning to credit cards or an overdraft to fund basic household bills need to be careful; while it's no bad thing to use credit to help manage outgoings occasionally, consumers must ensure they can repay any money they borrow or they run the risk of falling into a spiral of debt,” commented Scott Byrom, energy manager at MoneySupermarket.
Cash back credit cards
In relation to this, recent research from a leading comparison site showed that 41% of Brits choose their credit cards based on the cash back, rewards or Air Miles deals.
Additionally, the length of the 0% period was selected as a top priority by 25% of respondents, and having no charges for overseas facilities was the main concern for 19% of those questioned.
When bills increase, it is fundamental to understand what the exact conditions of your financial products such as bank accounts and credit cards are. Comparing the services that the different providers are offering could help to save valuable amounts of money.
Tags: BANK ACCOUNTS, bank accounts overdrafts, compare bank accounts, compare credit cards, cost of living, CREDIT CARDS, energy bills, extra income, low income