Consumers could save thanks to government credit card plans, says moneysupermarket.com
www.moneynews.co.uk > Credit cards > Consumers could save thanks to government credit card plans, says moneysupermarket.com
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Money News |
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Consumers could save thanks to government credit card plans, says moneysupermarket.com
Fri 30th Oct 2009
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The price comparison site made its comments following news that the government will take steps to address "negative payment hierarchies", which mean that the cheapest debt is paid off first on the majority of credit cards currently on the market.
At present, moneysupermarket.com estimates that on an average balance transfer credit card, a balance transfer of £2,000 and a purchase of £1,500 with a minimum payment of five per cent would take more than 24 years to pay off and accrue £3,175 in interest with a 2.5 per cent minimum repayment.
Moneysupermarket.com predicts that under the proposed system, the same loan would be paid off in nine years and nine months with £802 interest earned.
The government plans to end such negative credit hierarchies, which could reduce customer debts. The minimum payments for store and credit cards will be increased.
Around two-thirds of card holders do not know about the present hierarchies, said credit card expert at moneysupermarket.com Peter Harrison.
"These figures show the extent to which the government's proposed reforms will help consumers lower their personal debt," he said.
Click here for more credit cards news
Related News : Credit cards |
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