CREDIT CARDS
Brits expect to go over budget this Christmas
One in four Brits are expecting to go over their budget for Christmas this year, research has revealed today.
Many are also being warned that failing to plan ahead to pay off Christmas debts could cost an extra £70.20 in interest by the time next Christmas comes around.
The research also found that Brits will spend an average of £437 over the festive period on items including presents, food and alcohol.
This average spend, coupled with the average standard credit card APR of 18.44%, means that the festive spree could cost an extra £70.20 in interest by the time Christmas 2012 arrives.
Kevin Mountford is Head of Banking at MoneySupermarket.com, which carried out the research. He said: “Christmas and New Year is an expensive time for all, and there's no doubt people will put their hands in their pockets to pay for more than they can realistically afford.
“Consumers really need to try and keep a sensible head under their Santa hat, as once the decorations are down all they will be left with is a financial hangover.”
It was also found that more than one in ten people will put their Christmas spending on their credit cards or store cards.
“In order to start 2012 in the right way, anyone using a credit or store card to fund the festivities should think ahead on how they plan to pay off the debt,” Mr Mountford added.
“It's important festive spenders use the most appropriate card option to suit their needs; using the wrong credit card could end up costing far more than they bargained for.”
There are a range of credit cards available offering cash-back rewards, to help shoppers this Christmas. Capital One’s World MasterCard offers the highest cash back reward with 5.0% on purchases for the first 99 days.
The second best is the American Express Platinum Cash-back credit card, which offers 2.5% cash-back on purchases for the first three months.
Tags: christmas spending, compare prepaid credit cards, credit card companies, CREDIT CARDS, paying for christmas