Consumers warned over credit card debt

By Sarah Engle, Thu 29 Dec 2011 - Published in Credit Cards

Once the Christmas period is over many are left counting the cost of a busy festive season and those who have spent money on credit cards are being urged to keep on top of their debt.

Financial advisers have warned shoppers to be aware of how much they have spent and not to get into spiralling levels of debt because of hidden interest charges.

The government moved last week to cut excessive surcharges on debit and credit card transactions to ensure that shoppers and holidaymakers are getting the best deal when they purchase a product.

Glasgow Credit Union said around 214,000 Scottish credit card users admitted taking out cards simply for the interest-free offers. Many have seen cards as an easy way to pay for Christmas, without contemplating the financial implications once January comes around.

Hayley Street, from the credit firm, said: "After the festivities are over, consumers often forget about the limited interest-free period and may find their credit card interest rate suddenly shoots up - leaving many families struggling to pay back the cost of Christmas."

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