Christmas credit card warning
Christmas credit card spending can lead to serious debt if shoppers fall into the minimum repayment trap.
10:25 10 December 2004
Christmas credit card spending can lead to serious debt if shoppers fall into the minimum repayment trap, the Consumer Credit Counselling Service (CCCS) has said.
Research carried out by CCCS has found that the average Christmas spend of 813 is significantly increased if credit card holders only pay the minimum amount.
After six months of just paying the minimum there will still be 748.77 to pay on the credit card. Consumers will have paid out 117.88, only 64.23 of which will have gone towards the cost of the presents themselves.
Malcolm Hurlston, chairman of CCCS, advises: "Only paying off the minimum amount on your credit cards can lead to financial misery later on.
"CCCS would like credit card companies to make it clear on statements that making minimum repayments does have cost implications."