UK Finance News

Concern for Christmas on credit cards

Think Money, a leading financial solutions company, has urged would-be borrowers to consider how they’d pay everything back should they turn to credit in the near future.

With the festive season fast approaching, many people will be covering the cost of Christmas on credit cards, store cards and other forms of credit. It can be a quick and convenient way of spreading the cost of spending at this time of year – and with the base rate at an all-time low, may be an attractive option for some people.

However, there are concerns that borrowers without an adequate financial plan or a strict budget could have difficulties repaying what they owe.

An expert at Think Money commented:

“Financial planning is as important as it’s ever been – especially when it comes to borrowing money. Those of us who are managing well financially may be thinking about making a big purchase on credit – whether that’s home improvements, a new car or a holiday. That’s fine, just as long as those people have planned out a budget and are sure they can afford their repayments.

“Similarly, some people might be making a New Year’s resolution to get their finances in order. For some, that might involve taking out a debt consolidation loan to simplify their finances and set out a clear plan for repaying their debts. This can be a good way of managing debt, but borrowers still need to make sure their repayments fit in with the rest of their budget.”