Brits put Christmas on the credit card
A new report has found that nearly one in five British adults are planning to finance this Christmas with a credit card.
Some 17 per cent of respondents to the poll said that they plan to use balance transfer credit cards to fund presents, food and drink for the festive period.
This is compared to the 18 per cent who have already made enough savings to be able to afford any expenses this December, and 34 per cent who claimed they will have done so by the time Christmas is here.
Kevin Mountford, head of banking at moneysupermarket.com, recommended that those who are not prepared should take out a zero per cent balance transfer credit card provided they will be able to pay it off when the New Year comes around.
Mr Mountford said: "Provided you are able to pay off the balance in full within the zero per cent period, these cards are a good way of spreading the cost of Christmas.
"Don't be tempted to spread the cost over a longer term otherwise you may be still paying for this Christmas going into next year's festivities," he warned.
While the recession has caused many credit card companies to tighten their criteria for lending, Capital One recently introduced a new product designed for those with middling credit ratings.
The Capital One Progress credit card is open to those who have suffered rejected applications in the past, offering an initial rate of 34.9 per cent which drops five per cent every six months for "good behaviour".
Written by Karen Eliot
© Copyright
Related Articles
- Balance transfer credit card customers at risk from fraudsters - 12th February, 2010
Balance transfer credit card holders have been warned that fraudsters have found a way to exploit major flaws in the chip and pin system using stolen cards.
Researchers at Cambridge University have claimed that the fraudsters are placing a "wedge" into the terminal to convince it into believing that the correct security numbers have been entered into the system... - Lovemoney.com identifies the 'best balance transfer credit card' - 26th February, 2010
Britons who are paying interest on outstanding credit card debt have been told it "makes sense" to move that debt onto a zero per cent balance transfer credit card.
Serena Cowdy of lovemoney.com stated that the Virgin Money credit card is the best on the UK market, provided consumers are aware of how to use the balance transfer card product... - Lovemoney.com rates Barclaycard's new balance transfer credit card - 15th February, 2010
A personal finance expert has endorsed the new balance transfer credit card from Barclaycard.
As part of lovemoney.com's annual review of the best balance transfer credit cards and current accounts on the UK market, financial advisor Jane Baker praised the new Barclaycard product because of its "generous interest-free period on balance transfers"... - Balance transfer credit card customers experience interest rate rises - 16th February, 2010
Balance transfer credit card holders have been told that interest rates on credit cards have reached the highest level since 1998, new research has stated.
According to moneyfacts.co.uk, balance transfer credit card providers have hiked rates due to unemployment and concerns over people's ability to repay debts... - Lovemoney.com advises borrowers to consider a balance transfer credit card - 24th February, 2010
Britons have been advised that taking out a zero per cent balance transfer credit card could be an effective method of tackling the problem of interest charges.
According to a new study by the money education charity Credit Action, interest charges make up an enormous percentage of many consumers' outgoings... - Millions of Britons are unable to secure balance transfer credit cards - 18th February, 2010
Banks have been urged to offer their products to millions of Britons who are presently unable to access loans, overdrafts and all types of credit cards, including balance transfer credit cards.
The plea has come from the Better Banking Campaign, a body comprised of charities and local groups, which has claimed that up to seven million people are unable to access some regular banking services... - Lovemoney.com expert endorses the Barclaycard balance transfer credit card - 4th February, 2010
A personal finance expert has advised Britons to consider taking out the new balance transfer credit card from Barclays.
Jane Baker of lovemoney.com has insisted that the bank's zero per cent balance transfer credit card could help consumers to ease their debt burden... - Balance transfer credit card deals signal economic recovery - 19th February, 2010
The re-emergence of interest-free balance transfer credit card deals is an indication that the UK is on the road to economic recovery, 24-7 press release reports.
Interest-free balance transfer deals enable banks and credit cardholders the opportunity to shift credit and debt... - Moneysavingexpert.com reveals rise in balance transfer credit cards - 8th February, 2010
The number of interest-free balance transfer credit card deals has increased as more banks offer to clear debt at cheap rates, according to moneysavingexpert.com.
The website has listed seven cards with a 15-month or more zero per cent period, while there was only one such card available this time last year... - Virgin Money's balance transfer credit card rated the best - 17th February, 2010
A leading personal finance expert has advised Britons that balance transfer credit cards can help borrowers to cut their interest and tackle their debts.
Money Mail's James Coney stated that the Virgin Money Mastercard, which offers 16 months interest-free at 2.98 per cent, is the best balance transfer credit card on the UK market...