Credit card holders could benefit through clever spending

According to research by moneysupermarket.com, homeowners can benefit with a little savvy spending.

Banks are currently fighting for savings, current account and credit card business and according to moneysupermarket.com, opting for a credit card with a 0% purchase offer and investing the equivalent amount of money in a current or savings account is an extreme case of banks paying us for our business.

On average, the UK household spends £5,790 each quarter on items such as food, drink, leisure, clothing and transport. Moneysupermarket.com recommend spending £1,930 for 3 months on these items with a credit card and invest the equivalent in a savings or current account at the end of the quarter. Pay the minimum monthly balance then clear the card balance at the end of the offer.

Those with a 12-month card with a 3% minimum monthly repayment and a savings account paying 6.3% will make a £280 profit. If all of the UK’s 25.7 million could be encouraged to do this, there would be an extra £7.2 billion to spend.

The latest development in banking is the 0% purchase credit card and 4 providers now offer this deal of 12 months or more. There was nothing like this on offer 12 months ago according to moneysupermarket.com.

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