Credit cards 'could help savers'

Consumers could look to get credit in order to help them combat the effects of low savings rates and higher taxes, it has been suggested.

According to money expert at the Times Alexandra Goss, the Bank of England base rate is still at an all time low of 0.5 per cent and the 50 per cent tax band came into effect on April 6th, which has left consumers out of pocket.

She advised Brits to look at taking out reward credit cards, which can improve credit ratings at the same time as offering cash back to those needing some extra money to help them meet the increase in tax payments.

"With savings rates so low, many banks are giving consumers better rates for spending money on cashback credit cards than on savings," Ms Goss explained.

The Child Poverty Action Group recently suggested that the nation's poorer families should also receive help during the recession, with greater access to financial benefits.

Posted by Gemma Walker.