It should not come as too much of a shock that credit card usage numbers went up during the Christmas season as many Brits turned to their plastic to help finance their Christmas gifts. According to figures, about a third of all people used plastic in order to buy their presents adding to their total debt while another 13% chose to overdraft or take out a bank loan.
The figures come from debt help and advice service Playplan which stated that they saw a 71% increase in people asking them for help with their debt last January and expect to see the same surge as the new year gets underway.
Brits owe about £159 billion in debt made up of overdrafts, credit cards, and unsecured loans and that is not counting the high debt that is always accumulated during December. Now is the time then for those that have debt to start creating a strategy to get out of debt before other bills come in and break the bank balance.
Andrew Hagger, an online finance guru, explains that most families are very strapped right now which is why at the beginning of the year it is important to step back and take firm grip of their finances. Hagger stated that is important to start creating savings whenever possible and to sort out the budget of the household as the first step.
He added not to procrastinate with the matter because in the long run saving a bit here or there will start to add up to a reasonable figure. He also stated that getting a good grip on expenditures is the first step because once you can see what comes in and out of your bank account it will become much easier to manage finances.