Using credit cards to finance Christmas should be 'last resort'
Using credit cards to finance Christmas should be 'last resort'
- Monday, 1 November 2010Using a credit card to fund Christmas can work out quite expensive and may lead to
debt problems.
According to a spokeswoman for moneyfacts.co.uk credit cards should be used as a last resort unless a zero per cent deal can be found.
She said: "If you're going to put the Christmas spending on the credit card then leave it on there and pay it back in small amounts at a time, and you haven't got an interest free deal in place, then do not get one.
"It's obviously going to work out to be very expensive and you're going to end up paying quite a lot of money in interest."
If a consumer resorts to putting their Christmas purchases on a credit card then they could be at risk of accruing
debt problems if they only make the minimum repayments each month.
Research revealed by the Co-operative Electrical on October 26th showed that one in three people who are not even in their mid 30s yet feel the need to borrow in order to cover the cost of Christmas.
It was also found that about a third of 24 to 35-year-olds would turn to a credit card if a loan or overdraft request was denied.

Recent Debt Management Plan News
56% of Brits have no life insurance which could leave family with debt problems
Wed, 04 May 2011More than half of UK adults currently have no life insurance cover, which could mean their loved ones are left with
debt problems when they die...
Brits thinking about retirement advised to seek debt advice
Tue, 03 May 2011Consumers considering their retirement options have been advised to seek professional advice, as they may end up with
debt problems in the future...
Brits planning to attend a wedding should start saving to avoid debt problems
Thu, 28 Apr 2011Consumers concerned about getting into
credit card debt to pay to attend a wedding may want to use their savings instead...
Couples planning their big day can avoid debt problems by negotiating a cheap wedding
Wed, 27 Apr 2011Couples-to-be worried about needing
debt advice in the future after paying for a wedding can ensure they avoid accruing
debt problems by negotiating a cheap wedding...