Credit card debt from last Christmas still with us

18 December 2008

One in ten adults are still carrying credit card debt from last Christmas, The Telegraph reports.

According to the Bank of England, the paper reports, consumers are carrying £53.1 billion of debt on their credit cards.

This is two and a half times what they owed a decade ago: ‘In the last three years the total level has stabilised, but there are concerns it has recently started to climb again as struggling consumers cope with the impending recession by turning to plastic.’

Furthermore, The Telegraph continues, credit card debt has also become more expensive, with the typical APR (Annual Percentage Rate) now 17.59%, up from 16.8% last November.

“People should always avoid debt whenever they can,” said a debt expert for Think Money, “but it’s particularly vital in the run-up to Christmas, when there are so many things they feel they have to spend money on, from gifts and food to celebrations and holidays. When people run up credit card debt they’re not certain they can pay off quickly, they’re setting themselves up for a poor start to 2009.”

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Tags: debt, credit card, credit card debt, consolidation, christmas, christmas debt

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