4.2m still paying for last year’s Christmas

According to MoneyExpert.com, an eighth of credit card users still have debts from last year, with the average time to clear Christmas credit card debt being put at 2.6 months.

Sean Gardner, chief executive of MoneyExpert.com, said: “Christmas is a time for giving and it looks we are definitely giving our credit cards a battering over the festive season.

“It is tempting to put spending on your plastic when it comes to Christmas and the bills are mounting up. Of course everybody intends to clear the debt as soon as possible but it is evident that millions of us don’t.”

With so many people still clearing credit card debt, Mr Gardner warned people from taking on loans that they cannot afford to repay.

Someone incurring £1,000 of credit card debt
in Christmas 2005 will pay around £169 over a year in interest if their card charges an APR of 16.9 per cent, MoneyExpert.com added.

It suggested that people looking for a debt management plan may wish to consider an interest free credit card transfer offer.