Buying a holiday on a credit card could lead to debt problems
Buying a holiday on a credit card could lead to debt problems
- Thursday, 24 February 2011People should avoid making big purchases on a credit card unless they intend to pay the bill in full each month, as they could easily get into
debt problems.
Such is the advice of Justin Modray, from financial advice website candidmoney, who also stated that using a credit card to purchase a holiday can be beneficial as it offers protection on purchases over £100.
He said: "Credit cards are usually an expensive way to borrow money so try to avoid using cards for big purchases unless you plan to repay the bill shortly afterwards."
Therefore, if consumers do not want to end up needing
debt solutions in the future, they may want to avoid borrowing money on a credit card.
Research by Travelex, which was released on February 22nd, showed that 26 per cent of the population are planning to pay for their holiday using a credit card, with 11 per cent having already done so.
This is an increase of ten per cent from last year.

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