Inflation Hit Consumers: How a Prepaid Card Could Help
The official headline rate of inflation has risen to 3.2 percent causing concern for many already struggling to make their income stretch.
If you are worried how this will affect you try using a prepaid card to help you budget.
Many Brits will be worrying how their already tight budgets will be able to accommodate a rise in inflation, especially for essential items such as fuel and food.
Keeping a close eye on your spending is more important than ever to ensure you do not end up in debt without the means to get out of it.
The 50-64 year old group face the highest rate of inflation at 4.1% being the only group to not experience a fall in inflation.
Transport prices of fuel rose more than 11 percent while air transport fares were up by 18%. This accounts for this age group’s high inflation rate as the majority of the 50-64 year old age group’s disposable income is spent in this category.
“It is likely that the announced increases in gas prices will adversely affect these households to a greater extent,” said Shona Dobbie, Head of the Alliance Trust Research Centre.
“We may see the inflation rates facing the elderly age groups increasing over the coming months.”
Food prices also remain high with fruit prices seeing an 11 percent rise and fish 9 percent.
Prepaid Debit Cards
Research by First Direct showed Brits are a nation of impulsive spenders as many throw away £2,256 annually by failing to plan ahead on purchases.
A prepaid debit card can prevent overspending as your budget is loaded onto the card used to make daily purchases without letting him or her spend more than is on the card. It is impossible to become overdrawn and rack up expensive interest on debts.