Consumer Spending Falls
Latest figures show consumer credit dropped in September as the nation takes a cautious approach to spending following the public sector cuts.
If you are keen to watch the pennies to make your financial situation more stable, try using a prepaid credit card to help you save money.
Motor finance is the only sector to have grown since September last year, rising by two percent, compared to the six percent drop consumer credit experienced, Finance & Leasing Association found.
Personal loans were also down as they saw a five percent drop over the last year while second-charge mortgages fell by 11 percent.
Consumer spending on the high street took the biggest hit as credit card use fell by eight percent and use of store cards fell by 23 percent.
“The new figures show that consumers continue to take a cautious approach to spending, with a decline in the amount of credit granted almost across the board,” said Fiona Hoyle, FLA’s consumer finance head.
Budget with a Prepaid Credit Card
As VAT rises loom and public spending cuts start to take effect, many Brits will be looking to save money where they can to avoid running into trouble ahead.
A good way to prevent over-spending on everyday items is to use a prepaid money card.
Consumers can work out a budget of how much they would like to spend on essential items over a set period, a week or a month for example, and then load this amount onto the prepaid card.
The card can then be used in retail stores to make purchases without the user getting charged per item or transaction.
It is impossible to get into debt using this type of payment as the card does not allow the user to spend more than they loaded onto the card, so he or she cannot spend over their set budget.