A new report shows that one out of every four Brits will still have credit card debt leftover from the Christmas holiday season well past January. In fact, about 23% of all Brits do not think that they will be able to pay off their store cards and credit cards by the close of January. An additional eight percent believe that it will take them well into June before they get to the bottom of their balance.
Gocompare.com commissioned the study that asked people about their credit card and debt spending over the holiday season and throughout the rest of the new year. About a quarter of those included in the survey stated that they were concerned about their finances while 15% thought that they will still carry credit card debt into the future.
The survey also revealed some additional stressful results such as the fact that 22% of Brits actually run out of cash before the close of the month and are forced to rely on credit. Another 8% steadily rely on their credit cards in order to pay the bills on a monthly basis and a final four percent already predict they will need to take out a loan sometime during this year.
Gocompare.com’s head of credit cards, Jeremy Cryer, stated that the combination of salaries staying the same placed against the increased costs of living are putting a strain on household budgets and families are finding themselves forced to use credit cards to plug up any gaps.
Cryer continued to say that cards can be a useful tool if they are used wisely and carefully, but when you start to rely on credit for everyday purchases or basics then it can be very easy for expenses and debt to get out of control.