Debt advice for incorrect credit cards

This Christmas, five million people will use the 'wrong' credit cards to fund their seasonal purchases, leaving many seeking debt advice in the New Year.

According to Moneysupermarket.co.uk, two-thirds of credit card users are buying their festive treats on credit cards which carry standard rates of interest, which will increase their debt, rather than taking advantage of those which offer rates of zero per cent.

Seven per cent of consumers even use balance transfer credit cards to buy Christmas presents with, when these are actually designed to help them pay off their existing credit card debt.

Kevin Mountford from Moneysupermarket remarks that whilst credit cards are a useful spending tool, consumers "need to understand the cheapest way to borrow on their cards [to] avoid getting stung by high interest rates or charges".

Debt management expert Kevin Still says, "There is a difference between being ill-informed on the best way to shop on plastic and actually having to use a balance transfer or the most expensive credit card to Christmas shop.

Many UK consumers are teetering on the brink of a debt spiral and will need to take control of their finances to avoid further debt problems."

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