Buying a holiday on a credit card could lead to debt problems

People should avoid making big purchases on a credit card unless they intend to pay the bill in full each month, as they could easily get into debt problems.

Such is the advice of Justin Modray, from financial advice website candidmoney, who also stated that using a credit card to purchase a holiday can be beneficial as it offers protection on purchases over £100.

He said: "Credit cards are usually an expensive way to borrow money so try to avoid using cards for big purchases unless you plan to repay the bill shortly afterwards."

Therefore, if consumers do not want to end up needing debt solutions in the future, they may want to avoid borrowing money on a credit card.

Research by Travelex, which was released on February 22nd, showed that 26 per cent of the population are planning to pay for their holiday using a credit card, with 11 per cent having already done so.

This is an increase of ten per cent from last year.
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Around 430,000 students will be given a manual about how to manage their money and avoid debt problems in the process.

Finance charity Credit Action intends to give its guide on student finance to young people planning to attend university in the 2011/2012 school year.

The average student is expected to graduate with debts amounting to more than £23,000 so the charity has created a guide to inform youngsters about the financial support available, how to budget and how to save money.

This could help would-be students learn how to stay in control of their money and help them avoid debt problems while at university.

Joanna Parsley, associate director of Credit Action, said: "Getting this information and guidance into students' hands before they begin university is key as it allows them to prepare financially, so their university experience can get off to a smooth start."..

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Posted in: Buying,could,Credit,holiday,problems