Consumers to clear Xmas credit card balances

Many over-50s are adopting sustainable credit card spending strategies for Christmas, Saga said today (December 3rd).
The credit card provider said that 28% of those Britons planning to fund some of their festive costs through plastic will try to pay off their balances immediately.

Included in this total are 32% of over-50s.

Saga found that 16% of all UK consumers expect to pay some or all of their Christmas costs through their credit cards.

Low-rate or 0% credit cards can both be used to reduce interest payments on these purchases.

Incentives generated by purchasing gifts on cashback credit cards can also offset next year's Christmas spend.

Saga commented: "Responding to the current economic environment, many people are spending only what they can afford.

"Today's consumers are reining in the cost of Christmas."

The Saga report also suggested that the typical Christmas spend will reach £435 per UK adult this year.

In 1999, average expenditure stood at £516, with costs rising to £666 when inflation is taken into account.