The Post Office has recently issued a warning that it expects credit card usage to be dramatically increased in January as people struggle to afford to meet their bills. It is expected that there is going to be a significant increase in spending for most people when compared with the same period last year.
The Post Office estimates that the average person will spend an extra £200 in January and people will be using credit cards to purchase everyday items. This is only a 2% rise on January 2011 but it is a signal about the state of people’s incomes and the increasing cost of essential purchases.
The head of credit cards for the Post Office is Az Alibhai who has commented, “Many people have debt spread over several credit cards and it can be a good idea to bring the debt together so that they can reduce interest payments and make everything a bit easier to handle. It is very important that people don’t let their debts get out of control and by using the right credit card this is something that can be avoided.”
A 0% credit card can be a good option if you are buying everyday purchases on your credit card. These cards mean there is a long period where you won’t have to pay interest on anything you buy. Currently, most credit cards of this nature are offering around 12 months as the standard interest-free period.
While there are a lot of cards that claim to have no interest it is important to remember that there will probably be fees associated with the card which are generally somewhere around the 3% mark.