Warning issued over credit card spending

Consumers across the UK have been warned to plan carefully how much they will spend on their credit cards over Christmas.

Samantha Owens, head of personal finance at Moneyfacts, suggests that shoppers who are not sensible about they spend over the festive season are likely to find themselves with a serious credit card debt burden in the new year.

Moreover, Ms Owens insists that there are particular debt management risks posed by cash withdrawals using credit cards, given the expensive nature of the practice.

“If you go to a shop that doesn’t accept a credit card, don’t go to the cash machine and withdraw cash off your credit card,” she commented.

“Not only are the interest rates a lot higher than what you get on purchases – but you also get charged from the day that you take cash out: so straight away you’re being charged this higher interest rate.”

Earlier this month, figures from Moneyfacts showed that dozens of credit cards offered in the UK have had their interest rates increased in recent months.