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.

About The Author: By Ian Iowek, Credit Repair Advisor
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