Monday 31st December 2007
With a myriad of personal finance products on the market, many consumers often have a variety of payment methods at their fingertips every time they make a purchase. With this in mind, Apacs has published a report entitled Payment Myths that aims to uncover how people really spend their money.
According to the payments association, 68 per cent of people "usually or always" repay their full monthly credit card balance - disproving the myth that borrowers rarely clear their credit card debt each month.
Apacs also dispelled the belief that nobody pays by cheque anymore. Although many retailers no longer accept this method of payment, it was found that the number of cheque payments is almost equal to those made using a credit card.
It was also believed that consumers only use cash when buying smaller or lower-priced items - but Apacs discovered that for all payments over £50, most people would rather use cash than a credit card.
The organisations director of communications, Sandra Quinn, said many spenders rely on what they know when it comes to shelling out.
"The Payment Myths report offers some interesting insights into payment behaviour amongst British consumers and looks to shed light on some common misconceptions," she said.
"While new technology means we can now bank online 24 hours a day or have our groceries delivered with the click of a mouse, traditional methods like cash and cheques continue to endure."
Meanwhile, the report also touched on banking trends displayed by those aged over 65 - many of whom might be reluctant to use electronic banking systems such as an online bank account.
However, Apacs discovered that in terms of online banking consumers, the over-65 age group is one of the fastest-growing.
Managing money via the internet can be a wise option for borrowers of all ages - particularly when it comes to credit card comparison or finding the most suitable current account.
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