4.4 Million Still Paying for Last Christmas

Moneyexpert.com launched a study regarding how many individuals may still be paying for last Christmas. Many of us have used credit cards in the past to fund our Christmas gifts as well as the food. This means that we have run up our credit cards. There are 4.4 million according to the study that are still trying to pay off the credit card debt from last year’s Christmas season. The study has also showed that more and more Brits have been finding themselves in debt because they have been unable to cope with the debts they have created using credit cards.

Standard Life has also looked into the credit card debts. They are seeing a shift in the debt as it seems more individuals are laid back about their borrowing approach. Rather than planning a budget and only using the income they have, many have been borrowing money to help cover costs for gifts as well as living. Many individuals have been borrowing to have a higher standard of living rather than living within their means.

The consumer attitudes have changed in the last couple of years with individuals trying to keep up with the standard of living around them or the A- list celebrities. This type of attitude is causing harm in the financial market to where they are becoming more into debt. Credit is also freely available to many consumers. This availability makes the financial decisions made even more unwise. Rather than considering the repercussions consumers have been getting what they need. It seems that people between the ages of 20 to 50 are more likely to borrow money as they are susceptible to the pressures of the market. This means that if they don’t have the cash to spend they just borrow it. Most often this is seen in the younger generations.

This type of attitude takes us right back to the Christmas problem and why there are 4.4 million still paying off the debt from last year. Christmas is the worst time for borrowing for consumers. It seems that the APACS estimates about 53 pounds will be spent on Christmas this year. Of the 53 pounds, 11.7 pounds will be credit card expenditures. This means that at least 10 percent of the individuals using their credit cards will still be paying off last Christmas and now this Christmas in the coming year. The idea is not for Christmas to be cancelled, but that the credit cards should be cancelled and consumers should live within a budget over borrowing money to keep out of this debt cycle.

If we don’t fall to temptation and purchase the little extras, keep to the budget for the income we have, and understand the limits we can get out of the debt cycle. Many of the individuals will continue to linger from a year to year basis in the debt cycles as long as they use their credit cards. The lenders have recognized some of these issues and have also begun to make it more difficult for credit card applications to be accepted.

Back To Financial News December 2007

All About Prepaid Credit Cards
4.4 Million Still Paying for Last Christmas
Higher Credit Card Fees for UK Customers
September Sees UK Credit Cards Holding
Ways to Avoid Overspending at Christmas
What Factors Come In To Play When You Apply for a Credit Card
Draft Guidelines for Recovery Agents
Opt For Debt Consolidation
Adverse Borrowers Need to Act Now