At this time of year many people are usually still lumbered with a heap of credit card debt, often on a number of different cards, and this is often as a result of the recent Christmas and New Year period, which for many people involves having to rack up huge levels of debt on their credit cards for things such as food, entertainment, clothes, gifts, travelling, and more.

Whilst some manage to repay the balance in full once Christmas is over many others spend months trying to get their credit card accounts back on track.

For some people repaying their Christmas spending balance month by month does not usually prove to be a problem, particularly for those with 0 percent purchase cards who can get away with paying no interest on the borrowing as long as they repay the debt in full within the interest free period.

However, this year many are facing an uncertain future in terms of their jobs due to the recession, and the poor financial climate is taking its toll.

In fact, the results of a recent survey carried out by Legal & General have suggested that around 20 percent of people in the UK are cutting back on their spending and trying to save money so that they can pay off their debts that they accrued on their credit cards over the Christmas period.

It is thought that the level of cutbacks in overall spending will have a further impact on the economy, which is not good news given that the nation has already fallen into recession.

The study also showed, however, that the nation’s appetite for credit card spending has not waned, despite the financial climate and uncertainty over jobs. The figures showed that many people who expected their credit card debt to fall in the next twelve months planned to use their credit cards to make everyday purchases.

Related posts:

  1. Consumers should budget to pay off credit card debt
  2. What are the options for consolidating credit card debt?
  3. Nearly a century to clear a £5000 debt with Barclaycard
  4. Financial Experts Offer Credit and Debt Advice
  5. Trying to save debt by cutting back on the cost of fuel?

Tagged with: •

Filed under: News

Like this post? Subscribe to my RSS feed and get loads more!