Benefit of buying gifts with a credit card

CHRISTMAS is just over a week away and still many of us won’t even have started to think about what we’re buying, who we’re buying for, and how much we’re going to spend.

No matter how many times I write about this I’m always struck by the number of people who tell me that they’ll still leave it until the last minute and buy whatever comes into their head as they wander round the shops, often after a long lunch that might have involved a couple of beers or glasses of wine.

We might be slightly more careful this year given that the number of Christmas lunches available has reduced, but can I urge you all once again to think carefully about what you’re buying, why you’re buying it, and whether you really have the money to pay for it without getting into serious debt at the beginning of next year.

Use your credit card by all means, but think about the rate of interest you will be paying on any debt that you incur.

The annual percentage rate on credit cards can be up to 30 per cent and we don’t all have the ability to pay it all off straight away.

January is a long enough month for many of us without having to worry about how we’re going to make even the minimum payments on our credit card bills when they drop through the letterbox in the middle of the month.

One of the benefits of using a credit card is that Section 75 of The Consumer Credit Act means that the purchases you make are protected if anything goes wrong.

So if presents that you buy break down and you find it difficult to make a claim against the shop you bought them in, or the manufacturer, then you can make a claim against the credit card company.

Remember too that your friends and family will still love you whatever you buy them so set a budget before you go out shopping, stick to whatever budget you set for presents, and don’t go mad at the last minute!