Thursday 28th February 2008
Money still owed on Christmas purchases could be causing some Britons to experience difficulty in 2008, it has been suggested.
Chris Tapp, director of financial education charity Credit Action, warns that current economic conditions are compounding the problem for some consumers.
He says: "In the run-up to Christmas there was a little bit of a jump in the rate of people borrowing and it could squeeze peoples budgets month by month."
"Utility costs are going up and the cost of food," he adds, explaining that the effect of such constraints is to increase the level of credit card expenditure in the UK.
Mr Tapp tells those who find they are unable to clear their credit card balance in full each month to seek help.
He advises that homeowners should prioritise their mortgages above all other expenses.
But where mortgage payments are being met on plastic, he warns that such a method of repaying lending is unsustainable.
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