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

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The NY Times posted an article in February about a recent trend among college students: getting married to save money on college tuition. It has sparked a heated debate that is still continuing four months later on a number of web sites. The most common objections to this practice are the trampling of the sanctity of marriage, and the loss of ethics. Despite the public interest in debating this topic, it is difficult to find people who are willing to openly discuss their own “paper marriages”.

The people interviewed in the NY Times article refused to be named, and it is for more than simply legal reasons. This article focuses on the legal and ethic ramifications of getting married for lowered tuition, but it ignores the emotions that are often involved in a situation such as this. Different expectations between the bride and groom, family expectations, and criticism from everyone from your friends to your coworkers can make this personal decision fodder for public gossip.

More than just enduring criticism from those around you, there are also the emotional ramifications. Unless you follow the advice of Rick Conley from whypaytuition.com by marrying a complete stranger and securing a prenup that costs thousands of dollars, there is always the danger of someone developing feelings of love or higher expectations than the other. Sure you saved $30,000 in tuition, but now your convenient money-saving technique has backfired. Your friend decides to fall in love with you, while you want to end the marriage as soon as you have your diploma. Even if it is only for financial reasons, getting married is a huge decision, and all possible repercussions should be considered before making this life-changing choice.

As someone who has done it, it’s not all that it’s cracked up to be, and a lot of unexpected things can happen.

Step back to the summer of 2007. After having to get a high interest loan from a private company to pay for my sophomore year of school, I complained to my ex-boyfriend that unless I got married or had a baby, I was going to end up paying a lot more in school loans than I wanted to. That’s when he suggested that I just go down with him to Las Vegas that winter while he saw his dad for a quick forty dollar ceremony. I wouldn’t even have to tell anyone about it. I agreed and we began to make plans for our winter excursion.

Then in October we got back together, I told my parents about us getting married, and things began to get complicated. My parents pushed for a real ceremony, even though they really wanted me to change my mind. I had started to want a real relationship and a real wedding since we had gotten back together, so I ended up agreeing to the ceremony. My groom dealt with this unpleasant surprise by limiting the guest list to as few people as possible. We spent about $200 total for everything, and got married with about 30 people in attendance.

We stayed with my mother-in-law for the first few months, and then moved into a cheap apartment. The first year we were married was hard on both of us. I wanted our marriage to be real, while he wasn’t ready to commit to staying together. It created a huge discord between us, resulting in tears and hurt feelings. It was only after I learned to not take things so personally, and he decided he really wanted to stay that our marriage began to get better. We were finally together for more than just money or convenience. It was for us, and it was for love.

For all of the pains that we endured, I only ended up getting one $2,000 grant that first year. Because my husband was working full-time at a place that paid $10 an hour, and I was working part-time at Walmart, our income was too high every year after that. If anyone decides to take the plunge and get married, whether it is because you are madly in love with each other, or because you want to get that coveted in-state tuition, make sure to think it over very thoroughly. If you don’t the results could be disastrous.

The article Is it Worth it to Get Married to Save on College Tuition? appeared first on The Toonari Post - News, Powered by the People!.