Credit card users slow to pay off debts, survey finds

www.moneynews.co.uk > Credit cards > Credit card users slow to pay off debts, survey finds

Credit card users slow to pay off debts, survey finds

Tue 10th Nov 2009

Up to 31 per cent of credit card users do not plan to pay off their debt for another six months, according to moneysupermarket.com.

Card users in their 20s are the least likely to pay off the debt quickly, with 38 per cent admitting they have money owing from the start of this year.

Following news that the banks are increasing the average level of APR to tackle bad credit, repaying loans could cost more for those who choose to spread their payments.

Peter Harrison, credit card expert at moneysupermarket.com, said paying off the minimum each month often barely covers the interest.

"One way for borrowers to reduce their interest payments is by taking out a card with a zero per cent introductory offer on balancer transfers, affording them a better opportunity to clear the debt," he commented.

Mr Harrison suggested only using cards for purchases over £100 as these are protected under the Consumer Credit Act, but to pay off the loan as quickly as possible.

Click here for more credit card news

Related News : Credit cards
	Brits spent less in the run-up to Christmas 2011
	Credit card spending fell in 2011
	Credit cards 'can be a useful budgeting tool'
	Credit card usage 'to rise this month'
	New measures to help Brits with finances
	Credit card spending 'less prolific in the last 12 months'
	AA Launches new reward credit card
	Borrowings 'still need to be repaid' during a gap year
	Clear information in credit agreements called for
	Brits 'focusing on zero per cent cards'