Credit card users struggling with fuel costs
The cost of living has really taken its toll on credit card users and other consumers across the UK over the past couple of years, with everything from the cost of food to the cost of fuel having soared in price. A recent survey has revealed that for many credit card users it has become necessary to cut back on the amount being spent on fuel, with many restricting the amount that they are spending.
More than a quarter of people in a recent survey said that they had been forced to cut back on their fuel spending as a result of petrol and diesel prices. Many said that they had been forced to use the car less in order to do this, whereas some are simply putting less petrol in and putting themselves at risk of breaking down or accidents due to the risk of running out of fuel whilst on the road. The AA said that last week it attended 15 percent more breakdowns caused by petrol running out compared to the same week last year.
Many people said that they were putting less petrol in but because they were unable to cut back on their driving they simply ended up going back to the petrol station more often. Others have been trying to reduce their spending by going to shops that are closer by or car sharing for work.
An official from the AA stated: “Consumers are cutting out one in 20 trips, shopping closer to home, combining trips and watching pump prices like hawks. Some are putting their and others’ lives at risk of grinding to a halt by running on fumes.” He added: “This AA research is a stunning indication of just how badly fuel prices are affecting so many drivers across the UK. If the fuel gauge is in the red by the end of the week, the likelihood of a six-mile or more round trip to an out-of-town store diminishes.”
Many holidaymakers turning to credit cards
Most people who go on holiday tend to have a fixed budget when it comes to their spending money, particularly in the current climate where most cannot afford to go over a particular budget. However, recent evidence has suggested that many people are overspending when they actually go on holiday, spending way more than their budgets and often having to turn to their credit cards.
Research has shown that around 60 percent of holidaymakers are experiencing financial problems when they come back off holiday as a result of spending too much whilst they are on holiday. The average amount by which each person overspends in £237 and around 34 percent of people said that they had blown their budgets altogether whilst on holiday.
Around 17 percent of people said that overspending was actually part of the whole holiday experience. More than one fifth had been forced to turn to their credit cards in order to continue spending whilst on holiday. Even those who decided to stay in this country have been overspending whilst on holiday, with around 67 percent having spent too much even whilst on a camping holiday within the UK. The research was carried out by City Confidential and officials said that the worst group when it came to overspending were those going on city breaks, with nearly 70 percent overspending whilst on a city break.
An official from Credit Confidential said: “The hangover from holiday overspend looks set to stay with us in the run-up to Christmas, with millions of us having to make changes to our budgeting plans in order to pay off these unexpected debts. Summer holidays are a great opportunity to loosen up and have some fun, but overspending can cause a holiday hangover that no-one wants to endure. It’s important to try to stick to your budget and, if you do overspend, to try to get back into the black as soon as possible.”
More Brits turn to cards for holiday spending
It has been revealed in a recent report that a rising number of British consumers are turning to their credit and debit cards to fund their spending whilst they are away even though many of them are still taking cash with them when they travel. Whilst many people feel a certain sense of security when they take cash along with them on their holidays as a precaution, many are now said to be using their plastic in order to pay for things whilst they are away.
Research was recently carried out by High Street banking giant, Halifax. The results of the research showed that around one third of travellers were now using their credit cards for spending and making purchases whilst they were away whilst around 40 percent were using their debit cards. Just five years ago the number of people using debit cards and credit cards came in at 20 percent, showing that there has been a sharp increase in the use of both types of card.
Brits are said to be spending around £1500 per years to escape from the trials and tribulations of everyday life and whilst they are away they are spending around £500. With many of them now using credit card to fund this spending whilst they are away, officials are now urging consumers to make sure that they are checking the cards that they take with them to minimise on the fees that they are charged on their cards for using them to make transactions.
Some credit cards come with a variety of different fees and charges when they are used abroad, such as foreign transaction and exchange fees on top of the interest and any withdrawal fees that they already charge.
Is it time to start hunting for a good Christmas credit card deal?
Christmas is the last thing that many people are thinking about at the moment, as many are enjoying the warm weather and being able to spend more time with their kids in the summer holidays. Many are still looking forward to heading off on their summer holidays. However, there are some people that will be considering the up and coming Christmas period, which although four months away will most likely be here before we know it.
Over the coming weeks those that are planning to use credit cards to pay for purchases over Christmas may start the hunt for a suitable deal. For many, getting a credit card that offers interest free credit on purchases will be essential in order to avoid paying interest on purchases made, and with some great deals around from credit card providers at the moment many may believe that now is the time to get their card in preparation for Christmas shopping.
There are also many people who will be considering using a credit card to make purchases for Christmas but will be unsure as to whether their application for a credit card will be approved. For these people, an early application can make a huge difference, as it is turned down they will then have plenty of time to think of an alternative means of funding their Christmas spending rather than suddenly finding themselves with no financial lifeline and no time to think of an alternative.
One industry expert said: “We all know how time can fly and Christmas may seem a long way off now but it’ll be here before we know it. For those planning to use a credit card it is always worth keeping your eyes peeled as otherwise you could miss out on a great deal. It also means that if, for any reason, you are turned down you still have plenty of time to think of alternative means of funding your Christmas purchases.”
Many determined to clear credit card debt in UK
A recent report has revealed that many people in the UK are so desperate to try and clear their credit card debts that they are raiding their savings and cutting back on their spending as much as possible in order to try and get rid of this financial burden. A recent study was carried out by Dutch-owned bank ING Direct, which showed that average debts on credit cards and loans had fallen to its lowest level in 18 months and around five million people had managed to get out of credit card debt in the past twelve months.
Many consumers have accrued costly credit card debt over the past couple of years, as financial problems and overstretched finances have forced them to borrow money to deal with even basic and essential purchases. Many are now trying to clear this debt as much as possible and are thought to have dipped into their savings by an average 5 percent in order to try and pay off their credit card debts.
Many consumers are getting little to nothing on their savings in terms of interest whilst they are paying a fortune in interest on festering credit card debts. With this in mind, many have decided that they are financially better off in the long run by getting rid of their costly credit card debts and the high levels of interest that come with them and taking a hit on their savings or even on their spending.
One credit card holder said: “I’ve had to rely on cutting back wherever possible in order to try and clear my credit card debt and overdraft because I can’t handle the interest payments anymore and don’t have good enough credit to get a 0 percent balance transfer card.”