Chester, England – Brits running out of cash before pay day could be stacking up high interest by misjudging the way they use their credit cards and overdrafts as a backup, according to an Opinium Research from MoneySupermarket.com.

The UK’s number one comparison site asked consumers where they turn when they run out of money, and found savings, authorized overdrafts and credits cards are the top three ‘go-to’ resorts for backup cash. Over a third (38%) dipped into their savings when they ran out of money, and 29% used an authorized overdraft to boost their cash flow.

In addition, a quarter (25%) used a credit card to tide them over until the next payday. The results also found 20% borrowed money from friends or family and eleven per cent extended an overdraft limit. Four per cent used a pay day loan when running out of money.

MoneySupermarket also calculated the additional amount in interest those turning to credit cards and overdrafts would pay, and found someone using their authorised overdraft (after introductory offers) of GBP500 for one day with Halifax would accrue interest of GBP4 in a month or GBP48 in a year.

The amount of interest rises to a huge GBP300 if the same debt is left for 30 days, over half the original amount ‘borrowed’. However, compared to an average credit card rate of 17 %( once introductory offers had expired) spending GBP500 would incur a charge of GBP6.70 of interest over a month or GBP75.46 in a year if only minimum repayments each month were made.

Kevin Mountford, head of banking at MoneySupermarket.com said: “Many consumers are struggling to keep their heads above the water due to the high cost of living. The high number of people turning to their savings pots as a backup for extra cash is reassuring, given times really are tough. However, for those relying on credit cards or their overdraft as a fall back until pay day, as our findings show, it really does pay to research your options and think about the additional interest you could end up forking out beforehand.

A balance transfer credit card could be a good option for those with existing debt on other cards, for example a zero per cent card such as Barclaycard’s Platinum Credit Card with extended balance transfer offers 22 months interest free on transfers.”

Women are more likely to fall back on their savings pot than men, with 40% they have done so in the past compared to 35%of males. Those unemployed said they have borrowed from friends and family first (35%).

Kevin Mountford continued: “For those who are continually struggling to stay out of the red before pay day each month, I would advise spending a few minutes to check through all outgoings, in order to work out where savings can be made. Reviewing your personal finances to see where savings can be made can help you release vital cash which can help alleviate the financial pressure.”

Image Courtesy of   David Burrows / Shutterstock.com

The article Britons Struggling Amid the High Cost of Living appeared first on The Toonari Post - News, Powered by the People!.

A leading discount travel site, released the March 2012 Hotwire Travel Savings Indicator, which features the top five cities in North America where hotel, air and car rental rates have dropped the most compared to this time last year.

“As we exit winter and temperatures begin to rise we’re seeing warm-weather locales like Southern California and Dallas offering great prices to entice travelers looking to get a head start on their spring vacations,” said Clem Bason, president of the Hotwire Group. “We’re also happy to report that one of the top value cities on our recently released 2012 Travel Value Index – Albuquerque – is proving its worth with big decreases in air and car rental prices this month.”

Atlantic City tops the hotel list this month with a 21% price drop. The beginning of the year tends to be slow for the Vegas of the East, so hotels always offer deeper discounts to fill their rooms. However this year, several new properties have been causing some stiff competition in the area, resulting in even lower rates.

In 2011 Dallas hosted the Super Bowl, causing hotel prices to skyrocket. This year, however, new hotels have increased the number of hotel rooms, driving down prices and putting the Dallas-Fort Worth area at second place with a 15 percent decrease.
Reno-Tahoe, Halifax and Washington, D.C., round out the list.

Last month Reno-Tahoe topped this list at first place, and although it drops to third in March with a 12 percent price drop, the city continues to be a deal market due to a weak winter demand. Halifax, Nova Scotia, makes its debut on the Travel Savings Indicator with a nine percent price drop.

Known as a beautiful leisure destination in Canada, the city is experiencing a slower tourist season than usual due to the cold winter weather. Washington DC makes a welcome return to round out the top five as the city is experiencing a lighter legislative calendar than last year, prompting less business travel and a dip in prices, especially during midweek.

Those in need of sunshine are in luck, because sunny Southern California is a deal market for airfare this month. Palm Springs tops the list with a 13% price drop and Los Angeles boasts an 11% decrease.

Chicago maintains its presence for the second consecutive month with a 13% decrease and an overall value city for 2012 as reflected in Hotwire’s Travel Value Index, Albuquerque saw an 11% decrease this month. Baltimore rounds out the top five air decreases with a seven percent price drop.

The article Rates on Travel Expenses Have Dropped, Travellers to Benefit appeared first on The Toonari Post - News, Powered by the People!.