The one pound coin is coming up to its 30th anniversary and although cash is still king in the UK, an increasing number of people are starting to use …
The one pound coin is coming up to its 30th anniversary and although cash is still king in the UK, an increasing number of people are starting to use other payment options to pay for things, according to new research from Go Compare.
According to the survey, 34 per cent of people try to pay for things using cash whenever possible and 48 per cent said they did not like being without physical money. This figure rises to 57 per cent for people aged 55 and over.
Cash is the main payment choice for anything priced under £5, with 92 per cent saying they use change to buy things such as newspapers and magazines.
However, this figure soon drops as the price goes up, as only 52 per cent of people use cash when purchasing anything between £5 and £20.
Debit and card usage is growing in the UK and on purchases between £5 and £20 a third of individuals use one, while 13 per cent would use their credit card.
Once the price goes over £20, plastic payment methods dominate. For items priced between £20 and £30, debit card becomes the most popular method of payment with more than half of people (51 per cent) using one.
Credit card payments are the third most popular choice in this price range, however once the cost goes over £30, they leapfrog cash into second.
Paying by plastic is an easy method, but it can sometimes make managing money more difficult. With cash, people can see how much money they have and how much they are spending. However, with debit and credit cards, people need to check accounts in order to assess their finances.
People can often find themselves in credit card debt by using their card to buy things as it is difficult to see how much is leaving the account after a few purchases. It's important for people to check their accounts regularly in order to keep on top of their finances.
By Amy White