Funerals major cause credit card debt
It was something of a shock to hear that funerals are thought to be a major contributor credit card debt. Annual spending on both credit and debit cards in the UK has now passed £647 billion, with funeral costs often being the largest item added to a credit card.
More than three quarters of all retail spending is now carried out using cards, of which there are thought to be just over 175 million within the UK. That must be at least 3 each!
Three of the highest value retail purchases and services were paying a tax bill, buying a car or floor coverings. However, the biggest single item added to the credit card was for funerals. Many were forced to use a credit card for at least some of the cost. The average amount was £1,114 – about a quarter of the normal cost of an entire funeral.
Not everyone realises that it is possible to buy a funeral plan for someone else. Or buy a funeral plan for yourself, but one with the facility to give it to a friend or relation just to ease the initial strain. No reason why their estate can’t pay you back in due course.
Although of course most of us use cards on a daily basis, it is a concern that many are forced to add over £1000 to their credit card because they cannot afford the full cost of a loved one’s funeral. They are of course simply adding to the interest and deferring the need to pay. And the interest is usually considerable. But for many, this is their only option in ensuring their friend or relative has a decent farewell. What about those who have to add the full cost of the funeral to their credit card? It doesn’t bear thinking about if they are on a modest income.
A funeral plan can avoid causing unnecessary debt for those you leave behind. For further information on what funeral plans can do and how much they cost, simply contact a member of our research team on 0800 0588 240 or use the enquiry form to the right.
Don’t use a credit card to pay for a funeral – get it organised in advance!