Don't use credit for debt management

Households struggling to balance their finances in the run-up to Christmas should not resort to using credit cards, as part of their debt management efforts.

Unless a zero per cent deal can be found, then building up credit card debt could mean a nasty bill just to cover the interest alone, according to Moneyfacts.co.uk

This would particularly be the case if households are stretching budgets by paying the minimum repayment amount required each month, said the company.

Debt experts have warned that Christmas spending can be disruptive to families' personal finances, creating further debt problems, whilst deferring the pain by using credit cards can lead to a debt spiral.

The advice comes as the Bank of England reports that total net lending to individuals rose by £0.4 billion in September – meaning more families may need to consult a debt calculator in future.

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