In the past there were many people that used their credit cards to pay for their fuel at the petrol pumps, and this is because they enjoyed the convenience and ease of doing this and in some cases could even earn rewards by spending on the card and then using the money that they would have spent on putting fuel in their car to repay the money spent on the card.
People are still using their credit cards at the petrol pumps these days but for very different reasons. According to officials the cost of petrol and diesel is now so high that many people have no choice but to rely on their credit cards in order to get them through the month and enable them to put enough petrol in the car to get around.
There are fears that the this new trend could result in people not only fuelling their vehicles but also fuelling their debts, as many are unable to afford to repay the balance in full within the interest free period because they have had to spend so much on putting petrol in the car. The cost of fuel has soared recently creating huge difficulties for drivers across the UK in terms of their finances.
An official from the credit reference agency Equifax stated: “It’s not surprising that motorists opt to use their credit card when filling up. Not many people will be carrying around at least £50 in cash but what is worrying is that, for over 10% of people, they are only paying off the minimum on their credit card each month. A further 18% are paying off less than 25% of their balance. What this means is they’re paying a lot more for their fuel than just £1.30-plus per litre; and more for diesel. Indeed, with one in five saying they believe it will take them more than a year to pay off their credit-card debt in full, the interest accrued will be quite considerable.”