Prepaid Credit Cards Aid Online Shopping
New research has revealed a significant percentage of consumers will do their shopping online this Christmas and opt for overseas retailers.
An estimated £16.7 billion will be spent this Christmas on gifts in Britain but Santander Cards has shown only 57 percent will be spent on UK high street stores.
Of the £369 the average Brit will spend on presents this December over a third will buy them online with UK retailers – the equivalent of £6.4 billion.
Overseas firms will receive five percent of the nation’s festive spend, amounting to £838 million.
Spending on credit cards is the most popular form way to fund these items as 46 percent will use one to make their purchases.
If you are worried about overspending and dealing with a heavy credit card bill in the New Year try budgeting your money with a prepaid credit card.
“With many people tightening their belts, shopping for Christmas gifts online can provide a more cost effective and convenient way of shopping,” said Ian Coles, Santander Cards director.
The keenest online shoppers come from the East of England, where 78 percent plan on spending in this way compared to 59 percent of those living in the North East.
However, people from the North East are more likely to head abroad this Christmas, where 14 percent are seeking warmer climes this year.
The younger generation are also more likely to spend online when it comes to presents with 80 percent of the 18-34 year old group doing so compared to 59 percent of those over 55 years old.
Prepaid Credit Cards
Prepaid cards are a good way to limit your online spending and also a safe way of purchasing items from overseas retailers.
Like credit and debit cards they are protected against fraud and require the user to enter a PIN when using them in a shop or at an ATM.
They limit the card user’s spending to the amount they loaded onto the card so they are not greeted with an unexpected bill at the end of the month, and know they will not spend over this amount.