Tackle Christmas debt hangover with attractive credit card or loan deal

January 12, 2010

By Mark Warner

As Citizens Advice Bureau figures highlight an ongoing increase in the nation's debt problems, consumers are being urged to explore their credit card and personal loan options to help rid them of their "Christmas debt hangover". Statistics show that Citizens Advice Bureaux across England and Wales have seen debt problems rise by 26 per cent when comparing July to September 2008 with the same period in 2009.

"With Christmas over, some people will be thinking about how they had spent too much money over the festive period," observes Richard Napier, Nationwide's head of credit cards and personal loans. "For some, this will simply mean tightening their belts for a while and cutting back on a few luxuries. But for those already in debt, the New Year can signal greater money worries."

Individuals with several outstanding debts - for example credit and/or store cards, overdrafts and loans - are advised to consider debt consolidation, since "a reasonable interest rate can help people manage their finances that much easier".

Examples provided include credit cards with 0% balance transfers and personal loans from current account providers willing to offer existing customers a more favourable interest rate.