Christmas on credit for consumers
Callcredit is predicting a rise in consumer borrowing following its analysis of the latest Bank of England statistics on borrowing and lending.
Credit card lending for December 2006 made up 60% of net credit card lending for the whole year and experts warn that this is likely to rise in December 2007.
Mark Ward, head of consumer services at Callcredit, said: “From our review of these statistics, and in spite of the widely reported credit crunch, we’re still anticipating that many consumers will turn to credit at Christmas in order to fund their spending.
“Worryingly, it could be these people who may find it more difficult or expensive to borrow on credit. Our own research shows that 75% of consumers believe that they’re not responsible for over-indebtedness, but it is important to remember that responsible borrowing goes hand in hand with responsible lending.”
Callcredit’s top tips on controlling your Christmas spending include remembering that credit card purchases accrue interest and that cash withdrawals on a credit card are charged at a higher interest rate than purchases.