Credit card debts unsettled since last Christmas

05/12/2007

Over 4.4 million credit card holders have unpaid debts which they must clear. Most of this debt grew due to high spending last Christmas; research from MoneyExpert.com reveals more information.

APACS the UK’s payment association group estimated £53 billion to be spent this December.

Chief Executive, Sean Gardner of MoneyExpert.com, commented: “We can all give into temptation at Christmas and put it on plastic but if the debt lingers from year to year you’re starting to get into trouble. Borrowing money is fine as long as you have a repayment plan.

“Unfortunately it appears millions of us do not. And with lenders getting tough that is not a good position to be in. If you’ve not cleared the debts of Christmas past it is time to face up to the future.”

New research indicated that three per cent of British adults took two months to tidy Christmas debts. People aged 35-44 are likely to still be suffering a pecuniary hangover from Christmas 2006.

The average zero per cent introductory offer on balance transfers lasts up to 10 months. Exploration of the market shows 72.5 per cent of all standard credit cards now offering a zero per cent balance transfer. Formerly the longest zero per cent balance transfer offer is 15 months which Halifax are offering, while the longest zero per cent on purchases is Virgin credit card.