Consumers who put their festive gift spending on to high-interest credit cards could be paying over the odds in interest in the run-up to Christmas, it has emerged.

Research conducted by Halifax shows that less than two-fifths (36 per cent) of people set themselves a budget when shopping for Christmas presents.

And the financial services provider calculates that the average shopper who uses a credit card with an APR of 17.9 per cent could be charged £23.09 in interest before clearing their debt.

"Our research shows shoppers could be paying too much interest on their Christmas purchases," asserts head of Halifax credit cards Ken Stannard.

Those looking for a little extra spending money in the run-up to Christmas might prefer to opt for a secured loan.

Headline rates on secured loans could be around 10.9 per cent - some seven per cent lower than the credit card example given by Halifax.ADNFCR-1287-ID-18343405-ADNFCR

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