With Christmas fast approaching many people are now using their credit cards to get online or hit the High Streets and make all sorts of purchases, ranging from gifts and cards for loved one to clothes, entertainment tickets, and more. Credit cards provide consumers with enormous convenience and flexibility at times such as Christmas as it means that they can use their card to make payments, and they can spread the repayments so that they do not have to find the money for their purchases all in one go.
However, there are also concerns over how this rising level of debt will affect consumers, and a recent survey has revealed that many will find it very difficult to repay the debt that they accrue on their cards, with many admitting that it is likely to take them more than one year to repay the debt, by which time they will have needed to find the money to fund next Christmas.
The research was carried out by moneysupermarket.com and over 2700 adults were questioned as part of the survey. Those taking part in the survey were asked about how they would fund their Christmas spending, and the results showed that around 15 percent of people – or around seven million people – were planning to use their credit cards to pay for purchases for Christmas. Of these nearly a quarter said that they would repay their balance within a month, 28 percent said that it would take them three months, and 8 percent said that it would take them more than a year.
An official from the price comparison site said: “Credit cards could be very useful over the Christmas period, for dealing with those additional costs that could otherwise prove difficult to afford. However, anyone taking on credit card debt should think carefully about how they`ll pay it back. In many cases, when the debt takes a long time to pay back, it`s because the borrower is struggling to afford the repayments. This could be especially costly with a credit card because the interest rates can be quite high. We`d advise anyone unsure about their ability to repay debt to avoid it wherever possible – and those already struggling should seek expert advice as soon as they can.”