With the average UK credit card now charging a whopping 35.61% APR, even Barbie’s checking her statements these days.
We’ve all been there. It’s 23rd December, you’re panic-buying presents in a crowded shop, and your debit card is looking decidedly worse for wear. That familiar thought creeps in: “I’ll just put it on the plastic. It’s fine. I’ll sort it out in January.”
Narrator voice: It was not, in fact, fine.
Let’s be honest – most of us don’t think of credit cards as “real” borrowing. They’re more like… financial flexibility, right? A bit of extra wiggle room? That magical money that future-you will definitely handle (sorry, future-you). But unlike Barbie’s dreamhouse, there’s nothing fantastic about a maxed-out credit card come January.
Why our Christmas credit card habit costs more than we think
It starts innocently enough. A few presents here, some festive food shopping there. But when we rely on unplanned borrowing like credit cards and overdrafts, we’re setting ourselves up for what we like to call the Three Stages of Christmas Credit Card Regret:
- The Swipe of Denial: “It’s just a few presents… and maybe some fancy cheese… and that gorgeous decoration set… and…”
- The January Statement Shock: “HOW much? And the interest is WHAT percentage?”
- The Six Months of Repentance: Still paying for Christmas pudding in June? You’re not alone.
The average Brit takes until April to clear their Christmas credit card debt. That’s four months of interest piling up, turning those bargain purchases into anything but.
A better way to plan your Christmas spending
At London Mutual Credit Union, we believe there’s a smarter way to handle Christmas expenses. Think of our Christmas loans as the responsible adult version of holiday borrowing – all the festive flexibility, none of the January regrets.
Unlike credit cards with their ever-changing interest rates and endless repayment terms, our Christmas loans come with crystal-clear benefits:
- Fixed monthly repayments that won’t suddenly jump because you missed a statement
- A clear end date for your loan (unlike that credit card balance that seems to live longer than your houseplants)
- Fair rates that won’t leave you wincing every time you check your balance
Why it pays to plan ahead
Here’s the important bit – if you’re thinking about a Christmas loan, applying early is key. Our application deadline is midnight on Monday 9 December. Yes, that might seem early, but future-you will be incredibly grateful to past-you for getting organised.
Breaking up with plastic this Christmas
The festive season should be about making memories, not mounting debt. If you know you’ll need to borrow for Christmas (and many of us do), think about doing it in a planned way that puts you in control.
A Christmas loan from London Mutual Credit Union gives you:
- The peace of mind of knowing exactly what you’ll pay each month
- Competitive interest rates that could save you hundreds compared to credit cards
- The satisfaction of starting January without dreading your statement
Ready to make this Christmas merrier and the New Year brighter? Check our our Christmas Loans page to learn more about your borrowing options.
Let’s make this the year you actually enjoy January instead of spending it in financial recovery mode!
