Bulgaria is lagging behind Central and Eastern European countries in terms of banking services use, according to research by marketing agency GfK Bulgaria.

According to the survey, the penetration of alternative financial services via internet or telephone in the country is extremely low, which in turn affects the segment’s potential.

Half of the respondents in the survey admit they did not use the services of even one bank in 2009, with only 14 per cent of the total saying they resorted to more than one financial institution.

Despite the negative trend, however, the number of local banks’ customers has started to increase in 2010, reaching 57 per cent of the total population as at end September against 54 per cent a year earlier.

The result, however, sends the country at the bottom among CEE peers together with Romania.

“The use of financial services is determined by the development of the society,” according to GfK. “Moreover, the matter is related to the ongoing processes in the banking system of the country.”

Debit cards are the most popular banking products, owned by 40 per cent of Bulgarians older than 15. However, only eight per cent of the population use them.

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Most cards offer grace periods to customers who pay off their balances each month. A grace period is the period from the statement date to the payment-due date. If payment is made in full by the end of the grace period, no interest is charged. But if only a partial payment is made, interest kicks in at the end of the grace period.

Many issuers have whittled down the interest-free grace periods on credit cards from 25 days to 20. Some credit cards have no grace periods whatsoever. Avoid them.