How did you pay for Christmas?

A whopping £2bn was put on credit cards to pay for basics like food and drink last December, according to the latest figures. Total credit card debt increased by £300 million last year to £56.1 billion.

The Association of Payment Clearing Services (Apacs) reveals that the UK’s 31.5 million credit card holders spent £32.3 billion in the last three months of 2007 – the second-highest sum on record.

No wonder, amid all the talk of a credit crunch and Egg’s infamous decision to ditch so-called “high-risk” customers, debt counsellors are getting increasingly worried about the financial state we are getting ourselves in.

Debt charities are reporting their own set of record numbers – calls from people worried about their finances since mid-January, when Christmas credit card bills started to arrive.

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One response »

  1. Chris says:

    I can’t agree more than to resist the temptation of credit cards. I wish I was wiser earlier. Unfortunately, I’m trying to get myself out of the debt (by trying to earn some extra income as posted on my site).

    If you DO have credit card debt and are trying to reduce it, you can contact your credit card company and let them know you found more competitive interest rates and ask them to lower your rate. Note that this only works if you have a good history of ontime payments and have been their customer for over a year. I learned this tip from one of the books I read.

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