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Don’t struggle with dinner-related debts

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Thursday, 29 Sep 2005, 2:04pm

Britons are urged not to run up credit card debts on tips for poor service.

The news that people in the UK spend more than £2.6 billion on tips will be no surprise to the credit card companies that see people's balances incorporate dinners and other day to day expenditure.

Furthermore, while it may seem reasonable to put the occasional meal on the plastic, it is surely inadvisable to risk over-the-limit charges by tipping even when they experience poor service.

Yet first direct reveals that 19 million people have felt obliged to tip even after they experienced poor service in a restaurant.

Richard Kimber, chief executive of first direct said: "A tip is supposed to be a reward for good service. But our survey shows that even in an age of consumer choice, 19 million people still feel obliged to leave a tip when they’ve had a rotten experience and over half of people do so just to prevent causing a fuss."

Customers who find themselves with lengthy credit card statements and are struggling to pay off the balance of meals and undeserved tips could benefit from taking out a consolidation loan.

Multiple card balances can be unmanageable and frequently offer an uncompetitive rate of interest. Consumers struggling in this way are encouraged to consolidate their debts into a loan with a better interest rate.



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