No summer holiday for credit card debt

THURSDAY, SEPTEMBER 14, 2006

New figures indicate that Brits spent over £9 billion on their credit cards while abroad this summer, meaning many are facing huge debts as they try to recover from their holiday extravagances.

The research from moneysupermarket.com also indicates that interest on holiday accrued debt could reach £550 million by the end of the year as people struggle to pay for their purchases.

The figures highlight the need for many Britons to take drastic action to get their finances in order, as Rob Kenley, head of credit cards at moneysupermarket.com, explains.

"You could be left with more than a tan if you don’t think about how to handle your debt when you come home," he said, adding that this is especially the case for the 41 per cent of credit card holders who fail to clear their balance at the end of each month.

For those struggling to pay off credit card bills, a debt consolidation or homeowner loan could be the answer to help get finances back on an even keel.