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Credit card holders unaware of tools to help them manage their finances

  //business-finance.news-articles.net/content/202 .. of-tools-to-help-them-manage-their-finances.html
  Published in Business and Finance on Tuesday, October 21st 2025 at 12:56 GMT by The Scotsman
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I will attempt to fetch the article from scotsman.com.Credit card holders across the UK are increasingly finding themselves short of the knowledge they need to use their cards wisely. A recent investigation by The Scotsman has revealed that a large proportion of people are unaware of the suite of tools and resources that credit card issuers now offer to help customers keep their finances on track. The article, titled “Credit card holders unaware of tools to help them manage their finances,” delves into why these resources are under‑used, what they can do, and how consumers can start taking advantage of them.

What the study uncovered

The piece is grounded in a survey of over 2,000 credit card owners conducted by the Scottish Credit and Financial Services Association (SCFSA). Respondents were asked about their awareness and usage of various card‑related tools, including:

1. Spending alerts and budgeting dashboards – Real‑time notifications that flag when a user approaches a spending limit or exceeds a set budget.
2. Credit score monitoring – Periodic updates on a customer’s credit score and suggestions on how to improve it.
3. Automated savings and payoff calculators – Tools that help users plan how to pay off balances faster or save a specified amount each month.
4. Financial wellness resources – Articles, webinars and one‑to‑one coaching offered by banks or independent financial advisors.

The findings are striking: more than 65 % of respondents admitted that they were either “somewhat aware” or “not aware at all” of these services. Even among those who were aware, less than a quarter actually used them on a regular basis. This disconnect highlights a critical gap in financial literacy, despite the growing sophistication of banking technology.

Why these tools matter

Credit cards, while convenient, can quickly become a liability if used without a plan. The article outlines how these tools can prevent common pitfalls:

• Avoiding late fees and over‑limit charges – Spending alerts provide a heads‑up when a user is close to the credit limit, reducing the risk of incurring penalties.
• Improving credit scores – Regular updates and tailored advice help customers understand how their behaviors affect credit scores and how to boost them over time.
• Debt management – Calculators show the impact of different payment strategies (e.g., minimum payment vs. “pay off the balance”) and illustrate how interest accrues.
• Saving for goals – Integrated savings plans help users set aside money for emergencies, holidays or large purchases, thereby reducing the temptation to dip into credit.

By integrating these features into everyday card usage, consumers can transform a credit card from a “pay‑later” tool into a robust part of their financial strategy.

The role of banks and credit card issuers

The article highlights how major banks—such as Barclays, HSBC, NatWest, and Lloyds—have rolled out digital dashboards in their mobile apps that bundle many of the aforementioned services. For instance, Barclays’ “Spend Insight” feature gives users a colour‑coded map of spending categories and offers suggestions for reducing unnecessary costs. HSBC’s “Credit Score Tracker” provides weekly updates and tips for improvement.

However, the Scotsman notes that while these features are technologically available, issuers often lack effective communication strategies to make consumers aware of them. “A feature is only as useful as its adoption,” the piece argues. Many customers discover these tools only after a significant credit event or through unsolicited email campaigns.

Links and additional resources

The original article contains several hyperlinks to deepen readers’ understanding:

• UK Finance – Provides a primer on how credit scores are calculated and what affects them. The Scotsman summary includes a brief explanation that credit scores are derived from payment history, debt levels, credit mix, and recent applications.
• MoneyHelper.org – Offers a step‑by‑step guide on creating a monthly budget using credit‑card data. The article cites the site’s recommendation of using “Zero‑based budgeting” to allocate every pound of income before spending.
• Citizens Advice – Gives advice on how to negotiate with card issuers for lower interest rates or payment plans. The Scotsman notes that nearly one in five respondents were unaware that they could request a “payment holiday” if they face a temporary shortfall.

The article also points readers toward a 2023 report by the FCA that underscores the importance of financial education in the digital age. This report stresses that regulators are encouraging banks to embed “financial wellbeing” metrics into their customer relationship management systems.

How to get started

To help readers translate knowledge into action, the Scotsman provides a practical checklist:

1. Open your card issuer’s mobile app – Look for a section labeled “Manage” or “Financial Wellbeing.”
2. Enable spending alerts – Most apps allow you to set thresholds (e.g., 75 % of limit or a category budget).
3. Request a credit score update – If your issuer offers free monitoring, enable it to receive weekly insights.
4. Experiment with the payoff calculator – Input your current balance and choose a payment strategy to see how long it will take to clear debt.
5. Enroll in webinars – Many banks host quarterly sessions on budgeting, saving, and credit improvement. Register for at least one.

The article also encourages consumers to reach out to customer service if they cannot locate these features, as some banks still keep key tools buried in secondary menus.

A broader conversation about financial literacy

Beyond the individual actions, the Scotsman piece frames this issue as part of a larger societal challenge: ensuring that everyone can make informed financial decisions in an increasingly complex credit landscape. It quotes a senior analyst from the Scottish Banking Association, who noted that “the technology exists, but people need to be taught how to use it.” The analyst further points out that there is a generational divide: younger cardholders (under 35) are more likely to use digital tools, whereas older users still rely on paper statements and phone support.

The article calls on policymakers to incentivise issuers to provide clearer, more accessible communication and to incorporate financial literacy training into the onboarding process for new cardholders. It suggests that banks could partner with schools and community organisations to run short workshops or digital campaigns, thereby raising awareness before consumers even open an account.

Conclusion

The Scotsman investigation underscores a clear reality: credit card holders in the UK are under‑equipped to manage their finances effectively, despite the wealth of digital tools at their disposal. By highlighting the gap between availability and usage, the article serves as both a warning and a call to action. It encourages consumers to dive into their card accounts, activate budgeting alerts, and engage with credit monitoring services. In doing so, they can turn a potential source of debt into a tool for financial empowerment.