BANK ACCOUNTS, CREDIT CARDS

Credit Card repayments take their toll on Brits

British people appear to be far more ready to spend money than to save it, according to new figures. The latest research reveals that Brits spend twice as much time thinking about their credit card payments than their savings.

The average British consumer spends up to £3,804 per year - or £317 every month - on repaying their credit cards, according to a new study published by Standard Life entitled ‘Your Commitments, Your Future’.

This means that Brits would spend over £152,160 on credit card payments alone over a 40 year period during their lifetime.

Unfortunately, British people don’t appear to be willing to put the same effort into their savings. People making monthly savings put £1,680 each year -only £140 every month- into savings and ISAs.

However, savings averages are higher - £154 a month- among people aged 45 to 54, with men among this age bracket saving up to £177 a month compared to the average £128 per month saved by women.

Overall, making monthly credit card payments is the most common action with 51% doing it every month. 44% of UK adults make monthly payments into savings and ISAs, and one in five is currently paying off a loan (21%).

‘Your Commitments, Your Future’

Considering these trends, Standard Life has launched the site knowyourcommitments.co.uk to help people understand their different commitments and enable them to plan ahead.

According to the site, Brits reach their financial commitment peak aged between 35-44 years old, spending £1,160 a month on 11 financial commitments.

Figures also show that people in that age bracket spend about 45 minutes every day thinking about their finances. While those making credit card payments spend over an hour per week thinking about it.

Spending time to find a good credit card and carry out a bank account comparison will help British consumers to save considerable money on their monthly expenses.

Tags: credit card payments, CREDIT CARDS, credit cards repayment, debit card spending increases, financial commitments, savings accounts, savings goal