Martin Lewis has revealed how drivers can save money every time they fill up their car with petrol.
With the cost of living crisis continuing to worsen, people across Scotland and the UK are looking for ways to cut back on everyday costs. Lewis has been sharing advice on how households can make their budgets stretch as far as possible.
The MoneySavingExpert co-founder has told motorists how they can save money each time they buy fuel just by changing how they pay at the pumps. He states that you could lower costs just by using a credit card.
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As reported by MyLondon, the specific type of credit card that is required is a cashback credit card, which pays users back each time it is used. While they can effectively shave money off the cost of topping up your car, it is advised that you set up a direct debit to pay back the card fully every month to avoid paying interest.
Card companies offer cashback and reward schemes in an effort to push customers towards using them regularly and therefore having to pay them back interest. The interest you pay can be much larger than the amount you save on fuel, which is why setting up a direct debit is highly recommended as you will not need to pay interest.
This can be easily done through direct debit, which allows the card company to take a variable amount of money each month corresponding to what you owe. If your company does not offer this 'repay in full' option when setting up a direct debit, contact them and ask them to ensure your direct debit is set up to pay off what you owe in full.
Lewis recommended the American Express card, which allows for 5 per cent cashback. Since the average cost of filling up a tank is currently £102 according to the RAC, using the 5 per cent cashback option with American Express could save you £5 every time you fill up your car.
Additionally, with the American Express reward card, you can get a 5 per cent bonus cashback on everything you purchase, up to a maximum of £100. The card is called the Platinum Cashback Everyday.
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