UK credit card holders spend nearly twice as much as savers set aside

Tuesday, October 4, 2011

Category: Secured Loans

According to Standard Life, UK credit card holders spend £3,804 on credit card payments per annum, which equates to £317 per month.  On the contrary, those who set money aside each month reportedly put £1,680 into savings and ISAs per annum, which equates to just £140 per month.

It has been highlighted that over a forty year period, if these commitments remained unchanged then UK credit card holders would spend in excess of £152,160 purely on credit card payments.  In contrast, over the same period, those putting money into savings and ISAs each month would reportedly save £67,200.

Standard Life’s report, ‘Your Commitments, Your Future’, also revealed that people reach a ‘peak of financial commitments’ between 35 and 44 years of age.  At this time of life, £1,160 is reportedly spent on eleven financial commitments per month, which are thought about for 45 minutes a day (on average).  In comparison, it has been revealed that people with savings and ISAs think about them for 24 minutes a week (on average).  Findings have also shown that credit card holders think about their payments for a little over an hour each week (on average).

The Standard Life report has shown that monthly payments into saving and ISAs are made by 44 percent of UK adults, while monthly credit card payments are being made by 51 percent, and 21 percent are repaying a loan.

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Homeowners who are unable to save as much money as they would like to, due to juggling expensive credit card bills each month, could consider taking out a secured loan to tie these existing debts up.  One of many finance options available, a secured loan for consolidation could leave borrowers with reduced outgoings – thus freeing up extra money each month, which could potentially be set aside for a rainy day.  However, if opting for a secured loan to consolidate debt, it should be remembered that consolidating your debt may increase the amount you pay back overall and extend the repayment periods of your debts.