Research from Confused.com shows one in 14 Brits are set to struggle financially in 2016 due to the aftermath of Christmas spending and one in five believe they’re currently in a worse financial position than this time last year. Some 21% confessed they’d spent more than they intended to in the run up to Christmas.

Data from previous years suggests credit card balance transfers will peak between 8pm and 9pm today

According to the poll of 2,000 UK credit card holders, 17% of Brits admit they spent more on their credit cards this Christmas than they did the previous year.

On average, Brits over-spent on their credit cards by an average of £543 during the festive season but 11% believed they overspent by more than £1,000.

Some credit card holders have taken to extreme measures to tackle their mounting arrears including; cutting down on eating out (27%), reducing their leisure activities and holidays (23%), limiting their food shopping (13%) and 10% have even reduced the amount of heating they use.

Transferring credit card balances

The research shows that many credit card holders (68%) admit to not transferring their credit card balances onto a 0% interest card. This is despite the fact several credit cards on the market offer at least 12 months interest-free credit, with some offering up to 37 months.

Nerys Lewis, head of credit cards for the comparison site, said: “Christmas is undoubtedly a time of generosity and giving, and many people will rely on credit cards to get themselves through the expensive festivities. If used wisely, credit cards could be a great way of spreading the cost of Christmas over a number of months, particularly with a 0% introductory deal that will give people a bit of time to pay off their purchases.

“However, for those who are unaware of such great offers, they should take a look at the rate of interest they are paying on their credit cards, as there are so many great deals out there. By knowing your spending needs you can find a suitable credit card, with the right interest rates and in the long run save you money.”

[article_related_posts]