Plastic over Paper: Try a Prepaid Card
Consumers are choosing to use their debit card over cash as this form of payment has outperformed notes and coins for the first time.
The Payments Council revealed over the August Bank Holiday, debit card spending amounted to £272 billion beating the cumulative amount of cash spent of £269 billion.
If you prefer to use a card rather than carrying cash around with you try using a prepaid card to prevent overspending on a debit card.
The number of withdrawals from cash machines supports this figure as it fell by 1.5 percent in the third quarter.
“We now expect our debit cards to be accepted everywhere we go – in pubs and clubs, at the corner shop, online and on the high street,” said Sandra Quinn, communications director, Payments Council.
The research also shows consumers are being careful in the current climate not to rely on their credit card as spending this way remained flat, and debit cards were used three times more frequently in the third quarter of 2010.
The total balance outstanding on the average credit card has fallen to its lowest figure since 2003, further evidence that the nation is taking their repayments seriously to achieve a better financial position.
Transfer Money onto a Prepaid Card
Many people prefer to carry cards around with them as they are protected from fraud should they be stolen unlike cash, and it saves the hassle of withdrawing the right amount of money when you need it.
If you are in the process of repaying your outstanding balance on your credit card you could try using a pre pay debit card instead of relying on your normal debit card.
This card can be used in the same way for making payments but it prevents you from spending more than you have unlike a debit card where you can sometimes unknowingly dip into your overdraft.