High street banking giant Barclays has issued fresh guidance to its customers, advising them to make a small but significant change to their cash habits to combat the ongoing Cost of Living crisis.
The 'Take Out a Tenner Less' ATM Strategy
The bank is urging account holders to consciously withdraw £10 less every time they visit an ATM or cashpoint. This simple behavioural tweak, Barclays suggests, can help protect an individual's bank balance and build stronger savings discipline over time.
The guidance recommends practical swaps, such as turning a planned £50 withdrawal for a Friday night into £40, or reducing £30 earmarked for a birthday gift down to £20. While acknowledging it requires adjustment, the bank states that doing this regularly encourages more creative and frugal spending habits.
Giving the £2 Coin 'Special Status'
In a separate but related tip, Barclays advises customers to give the £2 coin a "special status" in their personal savings strategy. As the least common coin in circulation, the bank suggests creating a ritual where every £2 coin received in change is immediately transferred from a wallet or purse into a jar at home.
The key, according to the advice, is to resist the temptation to dip into the growing stack of "chunky coins." The jar should only be emptied when full or at the end of the year, turning small change into a potentially significant sum.
Prioritising Debt Repayment Over Savings
Barclays, which has a significant presence in cities like Birmingham, also addressed a common financial dilemma. The bank clearly states that for customers who save monthly but also carry credit card or overdraft debt, they are often better off using available money to pay down the debt first.
This is because the interest cost of debt is typically far higher than the interest earned on savings. Barclays provided a clear example: £1,000 of card debt at 18% costs £180 a year in interest, while £1,000 in savings at 1% earns only £10. Using savings to clear that debt would leave a person £170 better off annually.
The bank concluded by acknowledging that financial pressure can severely impact mental health and signposted customers to its support guides for those struggling to pay bills.
