27 October 2008
Over one-fifth of consumers are planning to use their credit cards to cover the cost of Christmas, according to a new survey by Norwich and Peterborough Building Society. The research shows that the credit crunch is likely to put a strain on many families this festive season, with 57% of those polled planning to spend less than usual. Gifts are the first to take a hit, followed by food, parties and decorations. However, big bills will still be left to pay in the New Year. Some 36% of respondents said they plan to spend between £500 and £1,000 this year, while 17% expect to spend between £1,500 and £2,000. Of those who have not saved for the occasion, 22% said they will pay for gifts, food and other festive goods on their credit cards. However, credit card customers should look out for changes to their terms and conditions before putting their Christmas purchases on plastic. According to uSwitch.com, some credit card providers have been making minor alterations to their small print and putting up their balance transfer fees or reducing their interest-free periods.
© 2008 Adfero Ltd
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