Don't go cold turkey on debt, say experts

Consumers have been advised not to go "cold turkey" on their credit card debt in the run-up to Christmas.

A report from moneysuperarket.com has found almost a third (31 per cent) of credit card users have no intention of paying off the balance of their credit card in the next six months, despite the fact that postponing debt costs more in the long-run.

Peter Harrison, credit cards expert at moneysupermarket.com, said that only making minimum repayments would barely cover the interest accrued.

He added: "Consumers should use a credit card for purchases over £100 as these purchases are protected under Section 75 of the Consumer Credit Act should anything happen to the goods; but borrowers should aim to pay off the item immediately or as soon as possible."

Figures from the Bank of England reveal that credit card lending increased by £0.1 billion in September.