How much did you spend at Christmas? And how much of that was on your credit card?
Recent research from ING Direct found that, in 2009, the average person ended up £380 in debt covering the cost of the festive season. Brits spent an average of £490 over the holidays and it took them, on average, eight weeks to pay off the debt.
However, half a million Brits were still paying off their Christmas debt the following December. So, what are the best ways to manage your Christmas spending?
0% balance transfer credit cards
If you used plastic to fund your Christmas, the total cost of your festive season could end up being significantly higher than you think. If you end up paying interest on your balance for a few months, your Christmas could end up being extremely expensive. Many credit cards charge interest rates of between 15 and 20 per cent.
So, why not consider transferring your credit card balance? There are lots of interest free credit cards in the market and these cards offer you a 0% balance transfer cards (typically 12 to 16 months). By using interest free credit cards you can clear your Christmas debt without paying a fortune in interest.
Head online to compare credit cards
The best way to research and compare credit cards is to head online where there will be the best range of 0% balance transfer credit cards for you to consider. When looking at interest free credit cards, make sure you take into account:
- How long the 0% interest rate is for (and make sure you expect to be able to pay your Christmas balance within that period)
- Whether there are any fees for transferring the balance
- What the standard ‘go-to’ interest rate of the card is (in case you don’t manage to repay the balance by the end of the interest free period)
