Don't get into debt, 'make money work' with current accounts that pay interest
3rd July 2008
As households feel increased pressure to meet rising fuel and food bills they are turning to loans and credit cards to help fill the gap.
Price comparison site moneysupermarket.com has warned that this is a mistake and that consumers would be better advised to make their money work for them, for instance by picking a current account that pays a competitive rate of interest.
Tim Moss, head of loans and debt at moneysupermarket.com, said: "It's a very serious situation when you have people turning to a short-term solution to fund a long-term product."
He continued: "As well as saving money, you need to look at ways of making money. Is your current account one that pays interest so any money you do have is at least working for you?"
According to a survey undertaken on behalf of moneysupermarket.com, 2.3 million households have been spending far more on their credit cards because of rising costs and 1.8 million households have used a loan to help pay for rising mortgage payments.