Millions of people more reliant on credit in the new year than in 2007
New research from the Post Office® reveals that one in four credit card holders will be starting the New Year more dependent on credit than in 2007, with 41 per cent intending to rely on their credit card for day to day living costs such as grocery shopping.
The Post Office® is advising anyone relying on credit to ensure they get the best possible deal so they don’t end up over-paying for money borrowed on credit cards.
The research also revealed that half of card holders said they intend to use their credit card in the January sales and almost a third (28 per cent) said they plan to make bigger purchases on holidays.
With a huge 53 per cent of people not paying their credit card off in full each month, the Post Office® is urging borrowers to use the New Year as an opportunity to check all aspects of their finances – particularly the rate they are paying on their credit card.
Post Office® director of lending Gary Fitton said: “Typically January is the time of year when people struggle with their money the most. Many people have over-stretched themselves over the Christmas period and have little choice but to use their credit card in the New Year.
“But with some credit and store cards charging as much as 29.9 pct APR – it’s crucial to find the right deal. Borrowers would be much better off opting for a credit card which offers factors such as zero per cent on purchases or balance transfers allowing them time to pay off their debt in full without being charged extortionate rates for the interest incurred.”
As well as no overseas commission charges, the Post Office® credit card also has zero per cent on balance transfers for the first 10 months and zero per cent on purchases for the first three months. In addition, it offers zero per cent again on new balance transfers made during the month of the cardholder’s first and second anniversary.
Even after the promotional periods, the Post Office® credit card still offers a competitive interest rate of 15.9 per cent APR typical (variable).
