Abbey has launched a new credit card which is designed to pay for essentials offering a competitive rate of cashback to help struggling households.
The credit card
will have a limit of only £75 – it is intended to pay for small purchases such as essential groceries, to tide consumers over as the cost of living rises and offer them some help by paying cashback.
The new Abbey credit card will offer a number of benefits for cash-strapped consumers, such as three per cent cashback on purchases made at petrol stations and supermarkets for the first six months, and no interest to pay on balance transfers for nine months and purchases for three months.
Abbey has launched the card to help consumers who are the hardest hit by the rising price of food and energy. The price of a loaf of bread alone has risen by 41 per cent in the last 12 months, and, overall, food prices have risen 12.7 per cent.
"The increasing cost of living, combined with the credit crunch, means families need all the help they can get to cover the cost of their weekly shopping essentials" said Roger Lovering, managing director of Abbey credit cards.
Andrew Hagger from Moneynet called the new card a "timely and innovative". It will come as a "welcome opportunity" for consumers struggling with the higher cost of living in addition to the oncoming expense of Christmas, he commented.
"The rising cost of food and petrol has been hitting customers hard and unlike some other household expenses, these are not something we can do without." said Michelle Slade from Moeyfacts. "By offering cashback on these essentials, Abbey is refunding part of this increase back to customers, which will make the increased costs easier to bear."
Sean Gardner of MoneyExpert.com said of the card that "At three per cent cashback it's one of the stronger offers amongst the dozen or so cashback cards out there, the majority of which pay just 0.5% on purchases."
He added: "There are numerous cards out there offering APRs of 15.9% so if that's all you're looking for the card is not the cheapest but for those people looking specifically for rewards then this could be the answer, particularly if you tend to clock up a lot of miles or tend to put the monthly grocery shop on the credit card."
© Fair Investment Company Ltd