New research shows that two million of us are still paying off our credit card debt from last Christmas.
The study by Consumer Intelligence found that more than half of Brits said they will be using their credit cards to help fund their spending this coming Christmas – meaning debts are quickly stacking up for many.
A quarter of people told the researchers that they rely on their savings to fund their Christmas spending while 3 per cent said they would take out a persona loan.
Consumer Intelligence’s Managing Director, Ian Hughes, said, "Christmas is only one day in the year but the financial effects appear to last all year for a substantial number of adults."
These new figures follow earlier research from Sainsbury’s that found that British consumers put a fifth of their purchases on their credit cards. As people increasingly use their credit cards, they are also paying more off from their balances than in the past. For example, in 2008 some 4.1 million people still owed money on their credit cards from Christmas 2007.
It’s important to shop around for a good deal when deciding on a credit card – look for low interest rates and interest-free periods and move your balance around to take advantage of these.
Financial News
