Friday, 01 February 2019 10:20

January struggles made worse by high card rates

January is nearly over, and for many people, this means breathing a massive sigh of relief. Why? Bills continue as before.

Well, January is a tricky month regarding balancing the books. Everybody has slipped back into the mundane work routine, which can cause a lot of people to experience a feeling of despair - but more significantly it is the month where overspending in December comes to royally bite people on the backside.

January is a long slog regarding stretching finances. For most working people, it is the fifth week since they had any income enter their account and now the Christmas credit card bill has arrived on the doormat, this can add a significant amount of pressure.

Recently released figures highlight the plight that a lot of people are currently facing. According to statistics, seven out of ten people in the UK spent a lot more than what they could realistically afford in December, and this has meant that many people have struggled to get through January. Many Britons are now battling their way through paying off extortionate amounts of interest that have been accumulated on credit cards. The lucky ones will be back on an even keel come the end of the month, but there will be some who will be playing catch-up for a good six months merely to pay for Christmas.

The biggest issue is interest that is charged on credit cards. For some reason, credit card usage doesn't have the same stigma as what payday loans or other financial outlets get, in many instances, credit cards have the same or worse rates of interest. Well over 35 per cent of people that were questioned said that they are paying the very highest rates of interest on these cards - this means that some poor souls could be paying anything up to £1,000 interest. That is a disgrace and begs the question why do payday lenders get such a hard time when credit card companies and banks are equally as bad, and possibly worse in the rates that they charge?

As with anything, in order to not get ripped off, people should scour around for the best credit card deals - people are being ripped off to the tune of thousands of pounds just because credit cards and their providers don't get the bad press that they deserve.

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