Christmas shoppers warned over using `wrong` credit cards
Wednesday, 15 December 2010 12:00
As many as five million consumers risk paying over the odds for their Christmas shopping by using the "wrong" type of credit card for purchases, it has been claimed.
Research by moneysupermarket.com shows that around seven million people will use a flexible friend to buy gifts this year.
Of these, five million will build up debt on expensive standard rate cards, rather than ones offering interest-free deals on purchases.
The comparison site added that seven per cent of borrowers will hit the high streets with a balance transfer card, despite these products being intended as a way to pay off existing debt, rather than covering new spending.
On the bright side, around half of credit card users plan to clear their Christmas expenditure within three months.
However, half a million people expect to still be paying off their debt by the time next year's festivities come around.
Kevin Mountford, moneysupermarket.com's head of banking, said: "It's all about borrowing smart, so credit card users should ensure they are either paying as little interest as possible or using a product that rewards them for spending."
According to Barclays, consumers are set to splash out a record £48.9 billion this Christmas.
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