One in four Britons borrows an average of £452 on credit cards at Xmas, survey says
(ShareCast News) - One out of every four UK citizens will begin 2018 owing an average of £452 on their credit cards due to all the Christmas spending, and half of them believe they will still be paying off the debt come next December.
According to a survey by USwitch, the price comparison and switching service, British spending on plastic this Christmas was almost £8.5bn, in spite of the rising cost of living that has reached a five year high in 2017.
Costs such as the Christmas dinner and gifts have pushed almost a quarter of the population (22%) into debt, with one in ten (8%) still paying off credit card debts from Christmas 2016.
Almost half of the consumers were concerned about their level of debt and one in ten were extremely worried about their level of borrowing.
USwitch advised consumers to align their finances in time in order to lessen the financial burden by doing things such as moving existing debt to a card that offered 0% of interest on balance transfers.
A money expert at USwitch, Tashema Jackson said that while January was the time for a fresh start, many consumers will be looking over their shoulder at the festive spending.
"Rather than try and forget about it, the best thing people can do is to make it a New Year's resolution to tackle their debt head on."
She added, "there are a number of ways to do this. Alongside cutting back on spending, using the right financial products is an easy way to keep your bills down. Cards offering 0% interest on balance transfers can offer breathing space for those who have longer-term debt, as it allows them extra time to get on top of their debt - with interest-free periods of up to 32 months available.
"As well as choosing the right credit card, shopping around for the best deals on things like energy, broadband, insurance and mobile phone tariffs could help cut your spending in the new year and could save you over £1,000."
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