Millions miss out on online savings

Over the past few weeks we have been advising you on the best broadband deals in Britain. Now, it has been revealed that shopping online can save you almost £1,000 per year.

New research has revealed that the average household can save £17 of the £456 it spends weekly by purchasing online. This may not seem much on the face of it, but it quickly adds up to about £70 per month, or £880 a year. And with many people feeling the pinch these days, these are significant savings.

However, the research, carried out by IDT Finance, also revealed that well over three million adults are unable to capitalise on internet bargains because they do not have the means of purchasing online as lenders continue to tighten access to credit, specifically credit cards.

Those with the means to buy online can save money in a number of areas. While savings are small on food products at only one and a half percent, more expensive purchases tend to be a lot cheaper online.

For example, consumers can save a combined 22% a year on electrical goods, clothing, entertainment and white goods. Some of the actual savings uncovered by the research include up to 50% on a flight from London to Lyon and 42% on Levis jeans. Savings were also found in entertainment; for example the research found that same Les Miserable tickets could be bought for £30 less online than offline.

Jamie King, director IDT Finance said: “The benefits offered by internet shopping are huge and can really help those who are watching their spending. But unless these people have access to a payment card, they are unable to take advantage of such savings.”

So, if you are not already an online shopper it is certainly an avenue worth exploring. As can be seen from our recent broadband reviews, top-quality high-speed internet access is available for about £20 per month. Though, in truth, a simple dial up connection should suffice for most, if not all, online transactions.

Of course, as well as internet access you will find a means of paying online. Best among these is a credit card. If you do not have one and you feel you may have difficulty in getting one there are some good alternatives.

One cheap and easy method is a debit card which will allow you to purchase online while the money is taken directly from your current account. Alternatively, you could use a pre-paid credit card such as IDT’s own Prime Card. You can top these up with your own money and then use them to buy online.

Both of these options are available from Visa and MasterCard and, so, are very widely accepted. There is also the added bonus with these methods that it is impossible to spend beyond your limits and build up unwanted credit card bills.

Another method you may want to explore is the use of online payment services such as PayPal. You simply lodge money to your account and use this to buy online. These services are usually cheap, easy to use and also widely accepted.

Shopping online doesn’t mean you have to join the eBay junky generation, though perhaps the occasional impulse buy is forgivable. What purchasing on the internet does offer is the opportunity to pay for, and save on, all kinds of practical and everyday items and services such as clothes, utilities and food.