Feb
01
2011
Umbrella company contractors warned over credit card dangers
Posted by Daniel Frost
Umbrella company contractors who choose to rely solely on a credit card as a financial safety net could find themselves facing mounting debt, according to an expert.
Susan Barclay, head of marketing at Scottish Provident, said that Britons without any emergency savings who choose to only use credit cards in times of financial emergency would only be able to manage for a short time.
"It’s clear that more awareness is needed among consumers on the importance of having protection insurance – the ultimate financial safety net – in place," she went on to say, adding that nearly two-thirds do not have any cover of this kind.
Her words came after the fourth annual Post Office Consumer Credit Report found that 11.5 million turned to credit for daily purchases in January.
Furthermore, 43 per cent of credit card holders used their plastic for getting items which would normally be classed as regular outgoings.
Umbrella company contractors who choose to rely solely on a credit card as a financial safety net could find themselves facing mounting debt, according to an expert.
Susan Barclay, head of marketing at Scottish Provident, said that Britons without any emergency savings who choose to only use credit cards in times of financial emergency would only be able to manage for a short time.
"It’s clear that more awareness is needed among consumers on the importance of having protection insurance – the ultimate financial safety net – in place," she went on to say, adding that nearly two-thirds do not have any cover of this kind.
Her words came after the fourth annual Post Office Consumer Credit Report found that 11.5 million turned to credit for daily purchases in January.
Furthermore, 43 per cent of credit card holders used their plastic for getting items which would normally be classed as regular outgoings.