The uptake of prepaid cards throughout the UK has led to the launch of a number of cards specifically designed for travellers. More people are opting to use travel prepaid cards over more traditional methods of payment abroad, such as traveller’s cheques and foreign currency.

However, although prepaid cards are great for use abroad, there are many different brands, types and associated fees, so it is important that you do your research before making a decision. Some prepaid cards are far more suited to travel than others too, so watch out for these as they could come in handy.

The first thing to point out about which prepaid card is best for travelling is that Maestro should probably be avoided. Although it may be great over here in the UK, it is not accepted in anywhere near as many locations as Visa or MasterCard. It is continually improving, with around 9 million locations worldwide in 100 countries, which sounds good, but unfortunately is a little lacklustre when you compare that to MasterCard, which is accepted at around 25 million locations.

So now that we have ruled out Maestro in our quest to find one of the best prepaid cards for use abroad, let’s consider its main rivals – MasterCard and Visa. Both card issuers have travel prepaid credit cards designed for holidaymakers to take abroad, but where do they show star quality and where do they flounder?

There are a number of prepaid cards for use abroad which come with Euro as the card currency, but there is only one from Visa – the Virgin Euro Travel Card – whereas MasterCard issues more than six different Euro prepaid cards. MasterCard clearly prevails with the quantity of prepaid cards for use in Europe, but it is also a much more dominant force than Visa across the whole prepaid card market.
Opening balance

Well, MasterCard has a couple of travel prepaid cards which can be opened with a relatively low balance – from as little as a tenner. This is obviously a bonus if you weren’t planning on loading the card with a lot of cash, although perhaps unlikely if you are pre-loading the card before your trip. MasterCard does offer some travel prepaid cards with much higher opening balance amounts, and these often provide the user with added discounts elsewhere.

Card fees

Visa has very reasonable card fees as it only charges for ATM withdrawals. There is no charge for the card itself, no monthly fee and both the exchange rate and purchase fee are completely free. If you are looking for a low cost prepaid card, the Virgin Euro Travel Card is definitely worth considering.

However, MasterCard strikes again by going one better – you cannot go wrong with the CashPlus Euro Travel Card. This travel prepaid credit card has no charges or fees whatsoever as long as you are using the Euro and are within the Eurozone, outside of the UK. There is no charge for card issue, no monthly fees, no ATM cash withdrawal charges, and no exchange rate fees. This is the best prepaid card for use abroad in Europe as it could even cost you less than taking cash (when you take into account the fact that you’ll get preferential currency exchange rates with the card)!

Currencies

While there are a wealth of travel prepaid credit cards which are perfect for use within Europe, which cards offer you the flexibility to use multiple currencies? The Travelex Cash Passport Card is available from both Visa and MasterCard, and offers the same great currency options with both issuers. However, as Visa has lower acceptance around the world, you would be best choosing MasterCard’s version. This prepaid card allows you to choose from Sterling, Euro, American Dollar, Australian Dollar, Canadian Dollar, New Zealand Dollar and South African Rand.

We have discussed numerous prepaid cards for use abroad but none stand out as much as MasterCard’s CashPlus Euro Travel Card. Next time you find your asking ‘what prepaid card?’, think about what you want to use it for because different cards are best for different uses.

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The current economic climate has put a dampener on everyone’s financial plans and those moving home have not managed to escape. In recent years homeowners have struggled with a combination of the costs associated with moving, difficulties in obtaining mortgages, and falling property prices. This has led to more and more people choosing to improve their homes rather than move house.

Research from the Royal Institution of Chartered Surveyors (RICS) has shown that a slow sales market has prompted people to make home improvements, and that this was most common in areas with a depressed property market. For example, in Northern Ireland more than 75% of people are securing home improvement loans rather than moving home.

Although home improvements are generally the less expensive option, they are by no means cheap, and you still need to find a way to finance the project. The most popular way to do this is by obtaining home improvement loans, which are a form of secured personal loan. The lender will decide on whether you are a suitable candidate for borrowing after considering your credit rating, your income and outgoings, and the value of your property.

Home improvement loans on the rise

Figures from Sainsbury’s Finance show that around 21% (around £3.2 billion) of all secured personal loans in the UK are taken out with sole purpose of home improvement. This has dramatically increased since 2007 when the proportion was just 14.1% of all loans. Sainsbury’s Head of Loans, Steven Baillie, has also suggested that this could be down to the number of people finding difficulty in moving up the property ladder.

Let’s say that you have been successful with cheap secured personal loans and are financed and ready to start making improvements – what should you spend the cash on? More than two-fifths (44%) of the RICS surveyors said that one of the best ways to add value to your home was to increase the number of bedrooms, or alternatively add a new kitchen or bathroom.

Moving costs

The costs associated with moving house include the estate agency fees (presuming you weren’t going to market the property yourself) stamp duty, mortgage fees, legal bills and much more. On a reasonably priced property, you could easily see these costs soaring to above £20,000.

For a similar amount of money you could convert a loft and add double glazing throughout the property. Alternatively, you could add a conservatory or carry out plenty of repairs, such as realigning gutters, restoring damp walls, replacing cracked brickwork, re-securing roof slates, and still have as much as £10,000 left over for a new kitchen and bathroom.

Knowing this, it is easier understand why homeowners throughout the UK, and particularly in areas with a depressed property market, would much rather search for cheap secured personal loans to fund home improvements than move house.

Struggling with debt

Although home improvement loans are clearly on the rise, the amount of money that people are borrowing is falling. The average value of this type of loan is now £8,318, a drop of £509 compared to last year’s average of £8,827. These figures could imply that people are also starting to struggle with paying back loans.

If you were to take out a loan of the average £8,318 over a period of 5 years, with a 7% interest rate, you would be paying back £164.71 per month. It is important that you consider if you could afford this additional outgoing by taking advantage of the available tools to manage debt, such as loan calculators and budget planners.

There are significant differences in the interest charges you will incur depending on which loan provider you choose, your credit status and how long you take out the loan for. Whatever you need to obtain finance for, it is important that you always search for the cheapest secured personal loans to save on interest charges you will pay.

In addition, if you are finding it difficult to cope with loan or mortgage repayments you should speak to your provider immediately because your home could be at risk if you don’t keep up your repayments and fail to get the help you need.

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Here are some things to bear in mind when you apply for a savings account because, let’s face it, sometimes applying for a savings account can become quite complicated, especially when you consider that each account is designed to meet different needs, and it is not simply about finding the best interest rates.

Types of savings accounts

There are several different types of savings accounts on the market, such as high interest, tax-free, and online savings accounts. The type that suits you will depend on a number of things, including how much and how often you will be saving, and how easily you want to access your cash.

How much money do you want to save?

Many of the high interest savings accounts are associated with high minimum deposits and are therefore only available to you if you commit to saving a certain amount of money, so make sure that you check this when you apply for a savings account.

Inflation

While we appreciate that inflation does not stir passion in most people, it is something to consider when it comes to your savings. If the rate of inflation is higher than your saving account’s interest rate, this means that the value of your savings is actually decreasing.

Tax

If you didn’t groan at the mention of inflation, you’re sure to groan at the sound of tax. If you are serious about your savings, you need to know what type of taxpayer you are because this could have an impact on your account. When you apply for a savings account, a good first place to stop is a Cash ISA as these are tax-free and so boost the amount of interest you can earn by up to 50%.

Access

If you need to be able to get at your money at any point, it wouldn’t be wise to invest your savings into a fixed rate bond. However, if you are not planning on needing the money for a long time, perhaps until retirement, a fixed-rate bond paying higher interest might be more appropriate. Similarly, cash ISAs are attached to an ISA limit so if you dip into your savings every now and again, you might want to get a standard instant access account for your short term savings and an ISA for your long-term savings (particularly handy if you want to still be able to access your long-term savings in an emergency without being penalised).

Withdrawals

Some savings accounts are associated with withdrawal restrictions, meaning that you are only allowed to make a set number of withdrawals from the account within a 12 month period. Going over this limit usually incurs a ‘no interest’ or ‘reduced interest’ penalty.

Interest payments

There are two typical ways to receive your interest payments, monthly or annually (although sometimes it is possible to receive quarterly payments). As a long-term saver, annual interest payments are usually preferred and monthly interest is more relevant for short term savers or those that need to dip in to savings.

Introductory offers

When you apply for a savings account it is possible that your bank or building society will offer you an introductory interest rate which will only apply for a set period of time. It is important that you establish whether you have been offered a high interest savings account, or if it is an introductory bonus offer.

Account Management

Modern times have brought about modern ways to manage your savings. No longer do you have to rush to your local branch before it closes at 5pm because you can simply open an online savings account. This would allow you to keep track of your finances from the comfort of your own home.

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As with all things in life, the way in which we travel and holiday is evolving with the times. As new technologies develop and the economic climate changes, we leave behind past holiday traditions and move on to a new way of holidaying:

1. How often do you rush to buy a postcard and send it on the first day of the trip? My guess is rarely, we simply drop friends and family an email instead – that is if they don’t already know every detail from your Facebook or Twitter updates.
2. How often do you go to the travel agent before your trip to order your travellers’ cheques? If you’re like the millions of other Britons, you have probably made the switch to holiday money cards or travel prepaid debit cards.
3. How often do you buy an annual travel insurance policy to cover the family for the year? More and more people are opting for single trip insurance instead because the chances of a second holiday in the one year are very slim.

When you are travelling or taking a quick break, it is important that you accustom yourself with modern processes and stay safe. Some of these traditions could be missed, particularly by the older generation, however many are widely accepted as being much more convenient and safer.

Holiday Money Prepaid Cards

Most travel prepaid debit cards do come with some fees attached to them, i.e. they are free to top up by debit card but will charge a percentage fee to top up using a credit card, but the majority are free to get and use to purchase items abroad.

The Escape Travel Card is one of the cheapest travel prepaid cards because you can do most things for free on it; it is free to get if you load £100 on to it (you pay £9.99 initially but this is credited back to your card once you’ve loaded £100 onto it within the first 90 days), gives free ATM withdrawals abroad, has no monthly fees and can be topped up at any Phones4u store for free.

However, more often than not, the slight disadvantage of paying some fees is far outweighed by the benefits they bring.

Holiday money cards allow you to upload cash on to the card, meaning that you do not need a credit check and you can’t get carried away with your spending. In addition, it can be quite risky carrying large amounts of cash with you while you are on holiday as it can easily be lost or stolen.

Most prepaid travel cards are able to offer you an emergency replacement card and cash should the worst happen. This can give you the assurance you need to relax and enjoy your holiday.

Travel insurance policies

Sometimes travel insurance can seem like more hassle than it is worth, but no one can deny that it’s saved a lot of people a lot of money over the years, as well as provided priceless peace of mind for many travellers. If you have never had an accident, had belongings stolen, or had to claim for any other reason you might think it could be worth risking going without travel insurance.

However, many have found that it’s not a risk worth taking, (an example that immediately springs to mind is the bride that fell off the balcony on her honeymoon but didn’t have travel insurance and had to raise money to get brought back to the UK via air ambulance) but of course it all depends on your individual needs and circumstances.

So, if one of the reasons you don’t currently buy travel insurance is that you don’t want to spend a lot of money on it; why not look at insurance for a single trip which is actually cheaper than you might think (if you are going on more than one trip this year, you could consider annual travel insurance as there’s some savings to be made by buying a year-long policy). Before you go on holiday always compare travel insurance deals and find yourself the policy to suit your needs at the price you can afford.

Words cannot express how important travel insurance can be when you are on holiday. Although it cannot prevent accidents from occurring, it can help you when you are in difficult situations. Research has shown that there has been a 23% increase in the number of single trip policies on the market in just three years. This makes shopping around for the right policy all the more important, so always compare travel insurance deals first.

Fraud Prevention Abroad

UK holidaymakers are usually robbed of millions of pounds every single year, so it is essential that you consider fraud prevention abroad. Travel prepaid debit cards are the perfect way to keep yourself safe from fraud and ID theft. Carrying a holiday money card saves you having to take credit cards and debit cards which are linked to your bank account. Also, if your prepaid card is ever stolen, you can only lose the amount on the card at the time it was stolen (at the very worst).

However, if you report your card stolen as soon as possible, your issuer will cancel it immediately which could mean that you will get some or all of your money back on a new card (minus a small replacement fee) especially if you have kept your PIN secure. This will of course depend on how long the thief has had alone with your card and how advanced their methods are.

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For most people in the UK, the deciding factor when choosing a broadband package is the speed of the connection, as this is what enables the efficient use of rich media such as videos and photos, and faster downloading.  All this talk of connection speeds leaves people wondering, ‘have I got fast broadband in my area?’.

Checking speeds

One of the best ways to check the connection you already have is with an online speed test which determines how fast your broadband really is, rather than the ‘up to’ speed the provider tells you that you can get.

These tests can scan your connection and the broadband exchange to find out what broadband speed you receive. Some of the top broadband providers in the UK have been under fire recently after a campaign was launched to prevent them from telling customers what speed they can get ‘up to’ because the reality is often much lower.

Broadband speeds are often dependent on where you live and the type of broadband you have, so just because your friend down the road says “I have fast broadband in my area” doesn’t mean that you will. Broadband speeds are notoriously faster in urban areas and if your home is closer to the telephone exchange.

Slow connections

Even top broadband providers in the UK cannot prevent your connection slowing in the evening because ADSL broadband is a shared service. The more people using the connection at once, the slower it will become. This is why you will find that your fast broadband slows down at peak hours and performs better throughout the day.

If you feel that you have a slow connection and would prefer to able to get fast broadband you have two options: you could optimise your computer and broadband connection (for example, you could look into whether you could switch to a cable connection which is typically faster than ADSL) or compare best broadband and phone deals on offer to find a new provider.

Comparing broadband and phone deals

Should you decide that you would prefer to switch to a different broadband package, you should compare broadband and phone deals first, as you will often get better value for money if you take out a combination package, or ‘bundle’. There are plenty of offers available from a variety of providers and one of the best ways to narrow your choices down is by comparing the top broadband providers in the UK.

An online broadband comparison tool will allow you to get an impartial overview of the broadband market, what speeds are available to you, and how much you should expect to pay. However, don’t forget that if you are already signed up to a broadband package, you may have to pay an exit or cancellation fee.

You should also be wary of broadband providers who claim that you can receive ‘up to’ a certain speed as  this will often depend on how fast broadband is in your area. Some online tools will show you results based on the speeds that are achievable in your postcode catchment area, giving you a more realistic idea of what to expect.

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Reality often doesn’t conform to perception. How do you perceive those who are struggling with unmanageable levels of debt for example? Are they male or female? Are they married or divorced? What areas do they live in? Do they own their own homes or do they rent? Think about it for a moment.

Debt has been a taboo subject for many years. There aren’t too many people who will openly admit to a debt problem and, as a result, misconceptions about the types of people who are struggling with debt are common. This is an issue that debt management company Payplan set out to highlight with the creation of the infographic shown below.

To measure ‘perception’ they conducted a survey which asked seven simple questions regarding genders, marital status, levels of debt, regions, etc that the survey participants would expect from the average person with a serious debt problem.

Payplan then took real-life data from all new clients that entered into either their free debt management plans or Individual Voluntary Arrangements (IVAs) from March 2010 to March 2011 to give a ‘reality’. The infographic compares the ‘perception’ with the ‘reality’.

The project highlighted that there are indeed a lot of misconceptions about debt. For example, the overwhelming majority of people thought that the average level of debt of a person on a debt management plan or IVA would fall into the range of £5000 – £25000. The real average amount of unsecured debt for people on these debt plans is £26,750. Also, in terms of regions, it is clear to see that many people assumed that the North East would be a debt hotspot. The infographic clearly shows that this is not the case.

The findings regarding marital status, home owner status and number of years it will take people to be debt free also show a big contrast between perception and reality.

However, the most important take away from this, and the point that Payplan are keen to stress, is that stereotyping those with a debt problem is wrong. Debt can affect anyone regardless of background, gender, marital status or where a person is from.

Payplan’s ‘Debt: Perception versus Reality’ Infographic

Source: Payplan – IVA and Free Debt Management Plan provider.

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Prepaid cards have proven to be a big hit in the US and around the world, and are now one of the biggest areas of growth in the financial sector in the UK. They work in a very similar way to pay as you go mobile phones – you top it up and cannot spend more than the balance on the card.

There are a number of ways to top up prepaid cards including with cash at a Payzone location, using your mobile phone, having your wages loaded directly, or transferring money from your bank account. The advantages prepaid cards offer have not gone unnoticed by British consumers and they are rapidly becoming a preferred payment method.

Debt

Prepaid cards are ideal if you are worried about getting into debt with a credit card. With a prepaid MasterCard or prepaid Visa card you set the balance and you decide how much you want to spend. You will never have to fear another sky-high credit card bill coming through your door. Simply top up the card with your maximum budget and then relax and hit the shops because you can’t spend a penny more than the pre-loaded balance.

Fraud

Unfortunately fraud is on the rise in the UK, so why not beat the criminals by switching to prepaid cards? One of the advantages of prepaid cards is that they are not linked to your personal details or bank account, so even if a fraudster gets their hands on your card, you will only be out of pocket by the pre-loaded balance (in the absolute worst case scenario – you can cancel your card when it is stolen/goes missing and get the money, minus a small fee, reloaded on to a new card by the issuer – your card can only be used with the PIN, so keep this safe and you shouldn’t lose any money), with no further worries about your personal information.

Security

Obviously prepaid cards are much more secure because of the reduced risk of fraud already discussed, but they are also a great alternative to cash. Carrying around large amounts of money is a security risk, so by loading it on to a prepaid card, you can avoid becoming an easy target for criminals.

No interest

Credit cards are beneficial for many reasons but, if you rack up high charges, you’ve got to be prepared to pay the interest charges too. With a prepaid MasterCard or Visa card, you don’t have to worry about any interest charges being incurred on your card. The cash you load on is your money, not borrowed money, so there are no interest rates associated with owning a prepaid card.

Travel

Another one of the great advantages of prepaid cards is the ability to use them abroad as an alternative to outdated traveller’s cheques and foreign currency. Simply load your prepaid MasterCard or prepaid Visa card before you leave, then use the card while on your holiday just as you would a credit or debit card, usually minus many of the hefty foreign usage fees often associated with other types of plastic.

Sharing

Prepaid cards are the perfect solution to sharing money with friends or family anywhere in the world. You can use them to send money for birthdays and Christmases, or even load up a card for someone who is stuck for cash.

Kids and prepaid cards

The same sharing idea applies to your teenage children, you can ask them to carry a prepaid card with them at all times, so if they are ever in trouble, you can load the card and provide them with instant access to cash. You can rest assured that your child can access the money quickly and easily without any concerns about them carrying large sums of money or having access to your credit and debit cards.

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In modern society it can be incredibly difficult to get by in day-to-day life without a bank account. However, opening up a new bank account is easier said than done if you have bad credit.

Options available

You might need to consider bank accounts for bad credit; one type that is often suitable is a bog-standard basic bank account. These accounts allow you to deposit and withdraw cash, but the other facilities (such as having a debit card, arranging standing orders, etc) will probably be fairly limited. If you have a very poor credit history, for example due to being declared bankrupt, you may not even be eligible for a basic bank account – but this only usually happens in very extreme circumstances.

Bank account benefits

You might be wondering why it is so important that you have a bank account. It is not absolutely essential for every single person to have an account, but it does make life a lot simpler and they do carry some benefits, for example:

• Most salaries and wages are paid directly into a bank account
• You can earn interest on your money
• Carrying/stashing large sums of money can be dangerous but it will be protected by safes and insurance if you have a bank account
• Your money is covered by the Financial Services Compensation Scheme (up to the sum of £85,000 per person per authorised firm – remember that one ‘firm’ may consist of several banking brands) should your bank go bust
• Budgeting is made easier because you can clearly see how much money you have
• You can set up Direct Debits (paying by Direct Debit will often earn you a discount on some of your bills, e.g. gas and electricity) and Standing Orders so you don’t forget to pay bills

Of course, it is possible to live without a bank account and, if you decide to do this (maybe because you have a bad credit history against your name or because you prefer to not deal with the banks) that is your choice. You are not legally required to have a bank account; it is simply the most common way to look after and manage your money.

Finding and opening a bank account

Let’s say you have ditched the idea of trying to struggle through life without a bank account, what options are available to you?

Well, the easiest way to find a suitable account is to carry out an online current account comparison.

Comparing bank accounts online allows you to see what is available, which accounts have the best benefits on offer, and whether there are any bank accounts aimed at people with bad credit.

When you find a suitable bank account for bad credit, it is important that you check if there are any charges and fees applicable to the account. Basic bank accounts rarely have fees for standard features. However if you are looking for enhanced facilities, you may be required to pay a monthly fee. All this information should be available when you do a current account comparison, but it is always worthwhile double checking with the provider too.

Re-building with bank accounts for bad credit

If you open a bank account for bad credit, start to use it responsibly and demonstrate to the bank that you are capable of managing your money wisely; it could help you rebuild your credit history. It is usually a good idea to talk to the bank about whether they will automatically upgrade your account in the future or whether you will need to ask for one.

Rewards

Bank account benefits probably won’t be applicable to you if you are opening a bank account for bad credit. However, once you upgrade your account, it is possible that you will be rewarded by your bank for being a loyal customer.

Carrying out the current account comparison should show you which banks offer their customers the best benefits – although it is important to note that many of these accounts do incur a monthly fee. The sort of bank account benefits you can expect to be offered if you go for a packaged account are: home insurance, travel insurance, breakdown cover, mobile phone insurance, interest free overdraft, credit card protection and other similar financial products.

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The Consumer Credit Directive (CCD) is an initiative that was brought into force in February 2011. The main goal of the CCD was to establish a set of rules for the credit market across the EU. It was designed to protect customers, improve understanding of products and help consumers taking out unsecured credit, such as a loan or credit card.

It is this new Consumer Credit Directive and its European laws that some credit card companies have allegedly been using to take advantage of borrowers. The companies are reportedly promoting catchy credit card deals, for which almost half of consumers would not be eligible for.

There are more and more credit cards which do not charge any interest for a set period available now to customers who are switching from a different provider. However, the number of people that are eligible for these introductory offers has dropped significantly since the introduction of the CCD.

Consumer groups claim that creditors are now using these extra-long 0% introductory rates as a way to entice customers into applying for the credit card products, now that they have to give the deals to fewer applicants.

With the cost of borrowing money at a record low and the law changing, allowing credit companies to decline more applications, there are now a greater number of deals available. The number of credit cards with an interest-free balance transfer period of 12 months has increased by around 200% over the past two years, but post-CCD only around half of the successful applicants are now accepted for the deals.

Previously, before the introduction of the Consumer Credit Directive, credit providers had to offer at least two-thirds (67%) of successful applicants the advertised rates on credit card deals, but this has dropped to just 51% under the new system.

The new laws brought in across the EU were designed to ‘harmonise consumer credit laws’ but the British Bankers Association had warned that more than 1.7 million consumers would be impacted upon negatively, and might even find they are unable to obtain credit.

In contrast, the UK Cards Association said that the directive has not made a significant impact and that the credit card market would continue to be extremely competitive. Despite the fact there is a period of low interest, or a 0% balance transfer offer, with credit card deals, interest rates remain at the highest level for more than 13 years.

If you want to apply for the best credit card deals it is important to think about what you want to use the card for. There isn’t one credit card which will suit everyone, so you will need to research the types of cards that will suit you. As we have said, there are many great credit card deals, including 0% balance transfer deals, you can take advantage of. However, your credit history will be more important than ever.

One of the best ways to find great credit card deals and go on to apply for a credit card is to use online comparison sites, as these are able to provide you with a good idea of rates across the whole market.

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The end of an era

For those under the age of 30, the term ‘cheque guarantee’ probably means absolutely nothing. However, if you still write out the odd I.O.U, you might like to know that from today (1st July 2011) the payment is no longer guaranteed by your bank or building society.

The decision to call an end to the UK Domestic Cheque Guarantee Card Scheme came in September 2009 after the members of the system reviewed consumer trends and found that the payment method was no longer used by as many consumers. Out of the 1.4bn cheques written in 2010, only 7% (95m) of those were made using the guarantee card.

The use of the cheque guarantee card has been in decline for many years, with the latest figures representing a 30% decline on the previous year, and a 70% decline on the past five years

What once was

The idea of cheque guarantee was that the bank promised to honour any payment made by cheque (up to a certain level) amount even if the customer did not have the funds available. The amount guaranteed ranged from £50 up to £250.

Repercussions

From today onwards, if a business or individual accepts a payment by cheque, the banks are no longer required to guarantee that the payment will be honoured. Should a cheque bounce, it will be up to the recipient to claim the owed money.

Although the use of cheques, and particularly cheque guarantee cards, has declined over the years, stopping it altogether could have a significant impact on small businesses and charities. Investing in modern payment equipment such as Chip & Pin terminals can be expensive and something that many simply cannot afford.

The extinction of cheque guarantee cards will also affect the elderly and how they pay for things as many prefer this traditional method of payment. Some charities have actually expressed a security concern as they feel that the elderly will be more inclined to carry large sums of cash rather than use digital banking and credit cards.

Resistance

The UK Payments Council does intend to phase out cheques completely by 31st October 2018. Although the members of the cheque system managed to make the guarantee card extinct, plans to let the cheque go the same way has not been backed by the Government.

Although the cheque is still considered a legal payment method, many businesses are expected to decline the acceptance of cheques from today. Therefore, if you are a regular cheque user, it is strongly recommended that you seek alternative payment methods as soon as possible.

Alternatives to cheques

Although you might enjoy paying by cheque, the realistic outlook is that not many vendors will accept the payment for much longer due to the lack of a guarantee. Today, most people rely on debit and credit card to make every day payments for shopping and household bills, etc. There are plenty of credit card deals available online which can help you manage your finances without cheques or guarantee cards.

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