New research has suggested that Brits are not planning to pay back the debt on their credit cards for another six months.

Financial advice website moneysupermarket.com has warned that major credit card issuers such as HSBC, Natwest and Lloyds TSB will be hiking the rates on their products in the near future.

Despite this news, research from the site has shown that nearly one-third of plastic users plan to delay making repayments for the next six months, risking having to shell out for the increased credit card charges.

This figure is as high as 38 per cent for the 20 to 29 age group, for which only 26 per cent pay off their credit card balance in full each month.

While consumers are planning to remain in debt to the credit card issuers over the Christmas period, moneysupermarket.com also found that several popular items for presents will become much pricier if outstanding payments for purchases are not made.

The Nintendo Wii console and Wii Fit game retail at £219.99, but could end up costing £240.56 if debts are not cleared until 12 months after the transaction.

Peter Harrison, credit cards expert at moneysupermarket.com, said: “People must be extremely careful about carrying debt on credit cards for long periods of time – you don’t want to be paying for this year’s presents when the Christmas decorations are rolled out again next year; particularly as rates could be at new dizzy heights.”

Previous research by the website showed that 17 per cent of British people plan to use balance transfer credit cards to fund presents, food and drink for the festive period.

It advised taking out a zero per cent credit card in order to keep the costs of Christmas down.

By Kevin Shield

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