Credit cards are bound to take the heat this holiday season. As usual, consumers are in the mood of buying presents for their loved ones whiles traders are relishing the idea of a bumper harvest. This without a doubt, is the most profitable season for mostbusinesses. In fact, some take in as much as 60% of their total yearly income during the Holiday season alone. Forward thinking people, who may have saved throughout the year , 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 that ensues in January.



However, this is not so for the Farepak customers in England, who made strenous efforts to save throughout the year to ensure a very happy holidays both for themselves and their families. This hope has been dealt with a severe blow as the company which would have provided them with Christmas hampers and such like has dramatically collapsed. Over 100,000 people have lost an average of $800.00 (?400.00) with the total money lost up to $80,000,000 (?40,000,000.00).

Sources from the troubled company say their bank HBOS, has severely disappointed them whereas the bank has publicized a report stating that the company bosses are to blame since they refused to use their own money as a guarantee a loan. Hence they were forced to pull the plug on them. Worse still the former CEO, William Rollason, quit the Direct Selling Association as he did not wish to shell out expensive insurance that protected people saving for the festive season.

So what will happen to these people? Well, a fund has been created and although four million has been raised, it still falls short of the original ?40 million owed. This can force these poor savers to use their credit cards to purchase the gifts they have longed to get for their families and loved ones. Credit card usage for the festive season can be a beneficial if used with planned ahead. It is necessary to remember that when January comes the credit card companies rub their hands in glee at the prospect of bumper profits in the form of late payment charges and so on. In fact, as a business, they also make more money this season than at any other. In addition to this, most employees receive their paycheck much earlier and as result will have to wait more than the usual four weeks to see the next one. The credit card companies however, do not care about such nuances. All they require is their payment on time.

Eliminating credit card debt is at best an unwanted situation. For those who do not wish to be paying credit card bills the months after the holidays are over, it is important, perhaps, not use a credit card at all or to clear the full balance as soon as the bill is received. This will prevent any credit score or credit repair issues.

Even If you decide to use your credit card, it is best to plan well in advance so that you know exactly how much you can afford.