Cash transactions now account for only 29 per cent of all
spending that takes place around the UK, according to a new
report assessing the way the nation pays.
The typical Briton carries close to 33 pounds on his or her
person at any given time but almost half of all consumers
now only withdraw cash on a weekly basis, figures from the
Motley Fool have demonstrated.
Relatively few people now carry large sums of cash around
with them and one in six of those polled recently by the
financial comparison firm said they only kept enough money
on their person to address emergency financial situations.
However, with increased spending seeming to take place
using plastic cards, it could be that people are accruing
higher levels of debt when out on shopping sprees.
British men tend to carry more cash around with them than
their female counterparts and the amounts that people keep
in their pockets tend to increase with age, while elderly
consumers are among those most likely to visit a cashier
rather than a cashpoint to access their assets.
Generally, UK consumers are becoming more comfortable with
using their debit and credit cards as a way of spending,
with the former becoming particularly prevalent. Those who
find that spending on a number of credit cards has left
them with unmanageable repayments to make might like to
consider loans as a means of improving their financial
position. Millions of Britons now use credit card debt to
fund their lifestyles and in many cases this can lead to
serious financial problems and the need for debt
consolidation.
In fact, the Motley Fool's research has shown that a third
of all consumers around the country now use their credit
card to fund their everyday activities and to cover their
ordinary living expenses, which for many will result in
debt troubles in the long run. While many people use
plastic to spend in a manageable fashion, those who find
themselves in difficulties might take on a debt
consolidation loan in order to become free of the arrears
they racked up through irresponsible use of credit cards.
David Kuo, head of personal finance at the Motley Fool,
commented: "Plastic can be fantastic but relying on money
we can't see is a reflection of how easy it has been to
rely on credit in recent years.
"But since you are not paying in cash, it is all the more
reason to take care as credit becomes more difficult to
obtain."
And while many Britons choose to take out a loan in order
to deal with their debt problems, Mr Kuo is keen to see
more people contribute to a savings account in order to
avoid these kinds of issues and the need for such action.
Meanwhile, research conducted recently on behalf of Abbey
Insurance showed that around 48 per cent of consumers in
the UK are worried about their personal finances in light
of the problems affecting the economic climate. And recent
observations from another financial commentator have
suggested that people should increase the amount of time
spent addressing financial pressures. Moneyfacts has said
that, in the wake of recent months' overspending, many
consumers would be well advised to look for the most cost
effective borrowing products to minimise the financial
impact of their debts.
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Abbi Rouse writes for AllAboutLoans.co.uk, a personal loans
comparison site, visit us today for information on all loan
topics including secured UK loans applications and cheap
loans from all leading UK providers. Our Site:
http://www.allaboutloans.co.uk
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