Credit cards for Christmas

Mon, 05 Nov 2007

More and more people are going to use their credit cards to finance Christmas shopping this year, just to cover the extra expense always incurred at this time of year. Many consumers are facing squeezed finances, meaning some have gone into even greater debt than before.

The findings were revealed by the Citizens Advice Bureau, who have warned that their staff are facing increasing call levels by those people unable to meet everyday living costs. With Christmas on the horizon, many will resort to credit card borrowing to finance their purchases. A spokeswoman for the CAB reportedly commented: "We have no reason to believe that the trends have changed. Significant numbers of people are really struggling to meet day-to-day expenses."

Forecasts are that the Bank of England will not ease interest rates this Thursday, with strong expectations that they will be maintained at 5.75 per cent for another month. With Christmas looming, many borrowers in the thick of the credit squeeze will be evaluating their options. With many mortgage holders up against the wall to meet their mortgage repayments, Christmas could exacerbate the debt crisis.
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