Brits Not Keen To ‘Think Before You Spend’
When the British use credit cards, only 35% of users admit to thinking about the impact on their spending according to new research. The study also shows that £145 is the average sized purchase that gets people thinking about their finances.
People clearly have not got their bank account figures in mind when using their credit cards, a new report published by a leading comparison site reveals.
"Using a credit card is a convenient way to pay for every day goods, however it is easy for consumers to lose track of what they are spending, which could have potentially disastrous consequences. It's worrying to see that only a third of credit card customers are always aware of the impact purchases have on their finances, but even more so that so many feel they only need to pay attention when spending over £100,” said Kevin Mountford, head of banking at moneysupermarket.com.
Your needs, your card
Financial experts also point out the importance of choosing a credit card according to your specific needs.
Mountford also suggested that someone wishing to make a big ticket purchase and needing to pay off the money over a longer period of time may want to go for an interest-free on purchase card, whereas a consumer clearing their balance every month could benefit from a rewards card.
“For those with a large outstanding balance and are unable to pay it off right away, the important thing is to clear the debt as quickly as possible,” he said.
Comparing credit cards is essential if you want to go with the option that works best with your budget and monthly payments. If you are worried about overspending, a prepaid credit card could help you. The card prevents overspending as there is no overdraft.