Spread the cost of a holiday to avoid credit card debt
Spread the cost of a holiday to avoid credit card debt
- Tuesday, 20 July 2010More than five million Brits plan to pay for their summer holiday with a credit card this year and this could easily get them into
debt problems.
According to moneysupermarket.com, consumers must be cautious when using a card to fund a holiday as it can lead to
debt problems as some credit cards have high interest rates.
However,
debt problems can be avoided if consumers use cards that offer a zero per cent interest rate and spread the cost out over the year.
Kevin Mountford, head of banking at moneysupermarket.com, said: "The decision to borrow should never be taken lightly and consumers need to be careful that they don't fall into a debt trap - they should never spend more on their card than they can afford to pay back."
If someone uses an interest free card they should aim to pay the money back before this period expires to avoid the balance increasing.
Reward cards could also be useful as they can provide cash back or air miles to use on the next holiday.
Consumers can now check their credit status and card balances online for just £2.

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