A woman has shared how she’s making the most of her credit allowance after living a “restricted” lifestyle due to “instilled” money fears.
The story comes just a week after new research revealed the dire state of the UK’s cost of living crisis.
Yasemin Kaya, 26, used to be “terrified” of falling into debt and vowed to never use a credit card after seeing the tough financial situation those close to her had found themselves in.
The product manager, who lived paycheque-to-paycheque, was often left missing out on dinner or drinks with friends and other social occasions.
Fearing she would never be able to enjoy her money again, Yasemin found a bizarre solution: reward credit cards.
She quickly realised that she could use this to her advantage and never go into debt.
“I don’t think I have ever heard anyone say their credit card has given them some of the best memories – but mine definitely has,” Yasemin, from Northampton, told NeedToKnow.co.uk.
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“I used to use my debit card for everything and managed my budget within that.
“But with living in London during university and the first few years of my graduate job, I was on edge.
“I had no support system if I ever needed money.
“I even bought my phone outright as I’m not keen on being tied to contracts or financial commitments for the same reason.
“I still did pay-as-you-go until very recently.
“I’ve always been very anti-credit card and anti-loans.”
Yasemin recalls spending time around family members growing up, who would often use multiple credit cards to live outside of their means.
When she saw her parents constantly struggling with debt, she was instilled with fear about ever finding herself in the same position.
But then, after always turning down invites from friends unless it was “justified” she knew something needed to change.
She said: “I always needed to have a reason to spend the money if it was for anything else other than the necessities.
“It’s easy to get that ‘fear of missing out’ feeling when you keep saying no to plans.
“For a while, it felt like I was just living to work and not enjoying what the city had to offer.
“I definitely felt quite isolated at times.
“As well, in the back of my mind, I always worried when it came to needing a credit score in the future and felt like I was being very naive with my money.”
Yasemin signed up for Yonder, a rewards credit card that gives back points on all purchases to put towards other experiences.
Now, she’s discovered new restaurants, offered to pay for the bill for friends, and visited the Seven Sisters cliffs – a bucket list moment.
She added: “It’s been great being able to turn around and say: ‘I’ll get the bill’ and knowing I can just use my points to cover it.
“I’ve saved up and used them for a digital detox cabin with my boyfriend, which was one of my favourite holidays to date.
“I had been thinking about doing it for ages, but I never had the money to spare.
“Now I use my credit card for every purchase and it’s made me feel more educated about how it all works.
“In general, the main thing is removing the negative stigma I had around spending money and I never feel stressed when travelling abroad now either, as I can use my card with no extra fees.
“It’s taught me that credit doesn’t have to be scary and spending money isn’t something to feel guilty about.
“Using the right credit card can add benefits to your life without putting you into debt – and now, I’m very much pro-credit card.”
Many people across the UK are struggling with finances right now.
New research by My Quick Loan analyses 34,000 payday loan applications and breaks down what people need the extra cash for.
Close to one in three applicants said this was for ‘emergency cash’ (27.1%), followed by ‘personal reasons’ (20%), home improvements (12%), and utility bills and vehicle expenses (10%).
Interestingly, one in 20 applicants was trying to consolidate debts or needed the money for special occasions, “suggesting a proactive approach to managing finances and celebrating significant life events”.
As for how much people asked for, this figure varied – although 60.3% asked for between £100-599.
The ‘average’ payday loan applicant was found to be a single millennial who works full-time. If you find yourself in debt and struggling to get out of it, look into how does an IVA work and use it to your advantage to regain financial comfort and safety.
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