Going Broke On Your Credit Card These Holidays
Credit cards usage is likely to increase once again this holiday season. As usual, consumers are in the mood of buying presents for their loved ones whiles shops are looking forward to a fantastic profit. This inarguably, is the best season for mostbusinesses. In fact, some take home as much as more than 40% of their total annual profits during the Christmas season alone. People, who may have saved throughout the year for this purpose, there will be no worries but plenty to look forward to - good things of course. It also means they do not have to worry about the credit card debt and the bills that come in January.
Loyal clients of the British-based company, Farepak Hampers have not been lucky as the "trusted" company with which they have diligently deposited their money in the hope of using it on presents for their loved ones and families this Holiday season has spectarculary collapsed. The state of affairs means that these customers are left with nothing and will have to find other ways of obtaining money to purchase their presents. With company bosses having pulled out of an expensive insurance scheme earlier to this collapse, there is likely to be no compensation of any sort for these forlorn customers. Company bosses from the failed company say their bank HBOS, has severely disappointed them whereas the bank has issued a long statement stating that the company bosses are to blame since they refused to secure their loan using their own funds. Hence they were forced to pull the plug on them.
Worse still the former boss, William Rollason, withdrew from the Direct Selling Association as he did not wish to shell out expensive insurance that covered customers saving for the festive holidays. For these unlucky customers of this beleagured company, a fund has been set up for them with contributors such as HBOS. So far only £3 milion has been raised, which nothing compared to the £40,000,000 required. Thus some of the savers interviewed have said they will have to fall on their credit card to make the shortfall. This is not the ideal, as credit card means debt in the future and some may not be able to pay the whole bill in full and the end of January leading to all sorts of unwanted hardships. To avoid a huge credit card debt and the headache that comes with it, it may be better to avoid using a credit card altogether. Although, we would all like to shell out some presents on our loved ones, it is best to do so within our budget. Using your credit card for purchasing presents can mean spending the rest of the following year just clearing those debts. The cumulative consequences can even land you with a low credit score and in need of credit repair. Nevertheless, many of us are likely to use our credit cards.
If so it's important to do some forward planning.