Credit Cards Pay for Christmas

There is concern that many people this year are going to be splashing out this christmas and using their credit cards to pay for it. When in actual fact this is the worst way in which to fund your seasonal spending.

After the financial traumas of this year namely interest rate rises, tougher criteria on borrowing etc... consumers are finding they have little spare cash to spend on the christmas season.

Credit cards are an easy and accessible way to pay for such items without a second thought until the bills start to roll in one month down the line. Paying for presents, shopping, food, on your credit card is only going to push you further into debt because of their incredibly high rates of interest.

Whilst many were hoping the base interest rate would be dropped by the Bank of England prior to christmas, it is speculated that it will remain the same at 5.75%.

Those who already have credit cards they can use will find themselves spending on them easily, however if you are looking to apply for a new one you may have difficulty as lenders are more cautious nowadays about who they will lend to. Figures already report that rejections for credit card applications have risen recently.

Homeowners who were hoping to use some of the equity in their house may find with a slowing down in property prices they may not be able too. But there are options open to some lucky homeowners. You may be able to extend the term of your loan, switch to an interest-only deal which will reduce your monthly payments slightly, or if your lender offers a payment holiday option you can take advantage and not have to make any repayments to your mortgage for up to 5 months. This does mean that you will take an extra 5 months paying off your mortgage, but it will still be more more economical than paying for Christmas with your Credit card.