Credit card debts ‘will linger for millions’

Credit card debt accumulated over the Christmas period looks set to be hanging over the heads of millions of UK consumers for months to come, according to recent research.

Sainsbury’s Bank estimates that around 18 per cent of all festive shopping was funded by
credit card debt and a study from the company suggests that around 2.9 million Britons expect to be still paying off their Christmas debts in four to six months’ time.

Furthermore, almost half a million consumers anticipate that they will still have credit card debts outstanding from Christmas 2007 when the festive season arrives again later this year.

“Those Yule-time shoppers who anticipate being unable to clear their credit card bills by the end of this month should consider spreading the cost and transferring their balance to a new card that offers zero per cent APR on balance transfers,” said Donald MacLeod, head of cards at Sainsbury’s Bank.

According to the Post Office, more people in the UK are financially reliant in their credit cards this month than was the case in January of last year.