use my credit card or save up in advance?
money is an important part of
the financial world we live in.
There are occasions in life where
loans or credit can help you to
live your life in the way you
want. But every time you borrow
money you have to pay it back,
plus interest. These repayments
can be a financial burden at times.
To find out more about interest, have a look at our section and if you are struggling with repayments,
why not take a look at our section
piling all your shopping onto a
credit card and paying it off later,
have you ever thought about saving
up before you need something? Have
a go at the exercise below to see
how your spending habits can have
an impact on the amount of money
you end up with.
a look at the activity below to
see the difference between shopping
with your credit card and savings.
Monthly payments have been rounded
up in the activity below to allow
you to use our simple loan calculator
with this activity.
let’s have a look at
credit card shopping:
You spend £180 on your
credit card. Your credit card
company charges an interest
rate of 8%. Use our loan
find out how much you would
have to pay back every month
if you paid back the money
over eight months. Also, find
out how much you would pay
a go at working out
how much you would pay with
other interest rates.
Now, let’s have a look
at saving: Imagine
you aim to save up the £180
that you will need for your
Christmas presents. You pay
in £15 over 12 months
at an interest rate of 3%.
Use our savings
calculator to find out
how much you would save.
to borrow money can be very useful
on certain occasions but at other
times it eats away at the contents
of your wallet. Before you make
a decision to use credit, it’s
a good idea to explore your options.