Credit Cards UK

Credit Card Debt Rises With Christmas

Christmas is a time of year that the credit card market rubs it’s hands in anticipation, as the need for credit at this time of year, is always in more need for the less well off, so it is time for all the un-solicited mail with the promises of guaranteed credit cards and loans, that drop through the letterbox with and un-seemingly ending stream.

The credit card issuers know that this time of year is the one time that people feel the pressure more than at any other time and with the promises of “free” money, this tempts the poor to head into a spiral of debt that they cannot afford from the outset and this wont just affect the card holder, it will involve whole families and that can lead to untold problems.

A figure that has been banded about of £300 million, is the figure of high interest credit cards and loans that has been offered over the Christmas period alone and will lead to many families having to pay off the debt for the rest of the year and beyond.

The pressure at this time of year on parents to keep the kids up to date with latest computer games, MP3 players and mobile phones, is a worry in it’s self and with these offers of guaranteed credit, will make that pressure recede till Christmas day, but will come back ten-fold, when the statement from the credit card or loan lender bangs on the doormat.

No one is suggesting that the lenders are targeting the poor, but they are not helping themselves that people are thinking they are, when they send out they’re leaflets and promises to whole town and cities, giving the feeling that they don’t care who falls into they’re credit trap, it’s just as long as some do.

The credit card and loan lenders have also came up with a new scheme that sees a blank cheque with anything up to £3000 pounds on it, which simply has to be signed handed into your bank and the money’s yours and this without checking if the person in receipt of the cheque, already has any debt to their name.

All of this has seen that the average household debt now stands at almost £8000 and most people who have this sort of debt, don’t really know the workings of the credit card or loan that they have bought into, so a tip is before you buy into a credit card or loan try and make sure that you fully understand what you are taking on, if not then you will only fall in deeper and deeper.

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