4M Brits have yet to repay credit card debts from last Christmas

December 13th, 2008 - 3:40 pm ICT by ANI  

London, December 13 (ANI): Over four million Brits have yet to repay the amount they spent on Christmas shoppings last year using credit cards, say reports.
Latest figures show that one in 10 adults, the equivalent of 4.5 million, have yet not paid off their credit cards even as the debt crisis worsens amid the economic downturn. Financial experts are worried that thousands of borrowers may feel miserable over the Christmas period due to further expenditure, as they face the task of repaying their credit card debts while family finances are stretched by the economic crisis.
Since prices have been halved by many shops, debt charities are concerned that cheaper articles will tempt many people to overspend again.
“More people are putting Christmas on plastic. People want to enjoy Christmas and credit cards can help with this. There is less cash around and people are still carrying debt from last year,” the Telegraph quoted Sean Gardner, chief executive of MoneyExpert.com that calculated the figures on credit card debt, as saying.
“The people who have been through a recession before are being less cautious, but those who have not been through a recession before are going to get bitten more than they could ever imagine,” he added.
The newspaper also reports that credit card debt has increased in the last four months.
“Amongst the people we help, there has been a noticeable upswing in the proportion of debts that come from credit cards. That”’’s because they have not been able to get a personal loan and have turned to credit cards,” said Malcolm Hurlston, the chairman of a debt charity called Consumer Credit Counselling Service.
The paper warns that an increasingly expensive way of borrowing money may worsen debt problems in the New Year. (ANI)

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