MyCallcredit has said that £11.4 billion was spent by 31 million credit card users over the festive period and has recommended that borrowers aim to repay more than the minimum balance and to pay off cards with the highest interest rate first.
The credit firm also advises that borrowers contact creditors as soon as possible if meeting payments becomes a struggle. Refusing to address the problem with lenders could result in them registering a default or a county court judgment.
Spokesperson Melanie Mitchley said: “There is an enormous temptation to overspend at Christmas and worry about it later.
“With the unexpected interest rate rise pushing up the cost of debt it is more important than ever that people monitor their debt situation and budget to pay back any overspending as quickly as possible.”
According to the Consumer Credit Counselling Service, if a fifth of a household’s outgoings are taken up by loan and credit card debts, then professional debt advice is probably required.