Brits expect to carry Christmas card debt beyond January
New research reveals that 23 per cent of Brits don't expect to have paid off their Christmas spending on credit and store cards by the end of January, while 8 per cent think that it will be beyond June 2013 before they have paid off their festive debts.
The survey, commissioned by price comparison site Gocompare.com also asked people about debt and their credit card spending throughout the year. Almost a quarter of those surveyed (23 per cent) were seriously worried about their finances while 15 per cent expect to have a credit card debt throughout 2013:
22 per cent of Brits say they run out of money before the end of the month
8 per cent rely on credit cards to make ends meet
4 per cent will need to take out a loan in 2013
Jeremy Cryer, Gocompare.com's head of credit cards, commented, "Static salaries coupled with the rising cost of living are placing a strain on many households and as our research shows, credit cards are being used to plug gaps in family finances. .
"Used carefully, plastic cards can be a useful budgeting tool, but when relied on for everyday essentials card debt can quickly spiral out of control. Worryingly, our survey revealed that eight per cent of Brits rely on their credit cards to make ends meet.
"The first step to managing your debt is to take control - when your statement arrives, don't ignore it - the debt will only increase as interest is added to the outstanding balance.
"Much of the money owed on credit and store cards is made up of the interest charged on the debt, so it is important to try and repay the balance as quickly as possible. If you can, pay more than the minimum repayment each month and if you have more than one card, pay off the most expensive one first.
"Switch your credit card debt to a card with an extended interest free period on balance transfers. These products usually carry a small balance transfer fee of around 3% but are still worth considering if you can benefit from zero interest on your balance for, potentially, a couple of years. Alternatively, consider switching your balance to a card with a low interest rate for the lifetime of the balance transferred. This will immediately reduce the interest rate until the debt is completely paid off. This may be a better option if you're unlikely to pay off a significant part of your debt during a 0% interest free period."