According to Sainsbury’s Bank, Britons spend £9.14 billion in the last week before Christmas but not everyone clears their credit card debt in January, adding to financial woes throughout 2007.
“Credit cards can be a safe and convenient way to do your Christmas shopping,” said Donald MacLeod, credit card manager at Sainsbury’s Bank. However, he warned that if people cannot clear their debt by January, people may wish to consider a balance transfer deal to spread payments.
For instance, 887,000 people told the bank’s survey that they plan to spend more than £1,000 during the last seven days before Christmas and a further 2.62 million people intend to spend between £501 and £1,000.
Without a debt management plan in place, this could lead to a financial crisis in the new year.