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Christmas credit card spending 'could take a long time to be paid off'

By Sarah Engle, Mon 24 Oct 2011 - Published in Credit Cards

Brits could end up paying for Christmas far into the future if they only make the minimum repayments on their credit cards, according to analysis by moneysupermarket.com.

The company calculated that a balance of £500 on a card with an average of APR of 18.12 per cent could take up to 11 years and eight months to pay off if only the minimum monthly payments are made.

According to the company, Brits who use credit to pay for Christmas presents should budget carefully and make sure they get the best possible deal for their spending.

"Those looking to take out a credit card will need to take the time to ensure they are on the right product for their situation or they could get caught out," said Kevin Mountford, head of banking at moneysupermarket.com.

Recently, Credit Confidential advised people going on gap years that they must keep up to date with their credit card payments even while they are overseas.