Yesterday we published a news story about the extra cost faced by those consumers who choose to pay for their annual car insurance premiums in monthly instalments (‘£624m bill for pay monthly car insurance customers’).
Many people choose to spread the cost of the insurance premiums over 12 months because they cannot afford to pay the lump sum in one go.
However, because the insurance company is effectively giving the customer a credit facility when they allow them to spread payments, it will charge the customer interest for the privilege. Unfortunately, the interest rates are quite high (above 20%) so the consumer ends up paying a substantial amount more for their insurance policy by paying monthly.
So, how can you avoid these interest charges?
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The new Compare and Save poll is now live on the website and we need your views on the topic.
This month we have decided to ask for your opinion on credit card offers over the last two years.
We want to know if you, as the consumer, think that credit card offers now offer more or less value for money as compared to two years ago.
Credit card offers range from 0% interest periods on purchases, interest-free periods on balance transfers moved from other credit cards and cash back offers and reward schemes.
For an offer to have improved, it may be offering more relevant reward schemes, or the interest-free periods will have been extended, or changed in some way, to make using the credit card more beneficial to your finances.
Let us know what you think and in a month we will publish and analyse the results.
Visit the polls section to take part.
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