Wednesday, November 23, 2011
Category:
Consolidation
According to Sainsbury’s Finance, interviews with a random sample of 2004 adults have revealed that the equivalent of 1.9 million people are intending to take out new credit cards in the next year due to the expiration of the interest free period on their balance transfers. An additional 867,000 people are also reportedly planning on taking out new credit cards because the interest free period on their purchases has expired.
Sainsbury’s Credit Cards has also revealed that when interest free periods expire, the typical balance transfer APR on these cards increases to 18.2 percent APR. In addition, the average typical interest rate increases to 18 percent APR on cards that offer an introductory zero percent interest rate.
Findings have shown that in the next twelve months, the greatest number of new credit cards will be taken out in the North East as a result of interest free periods expiring, at 49 percent. In the East Midlands and the South East, the figures reportedly stand at 35 percent and 40 percent respectively.
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Homeowners who may be juggling multiple credit card repayments could consider taking out a secured loan to tie them all up into a single, manageable, monthly repayment. One of many finance options available,
consolidation loans could allow borrowers to replace several, expensive, monthly repayments with a single monthly repayment that could be lower than the sum of current outgoings. However, if opting for a secured loan to consolidate debt, it should be remembered that consolidating your debt may increase the amount you pay back overall and extend the repayment periods of your debts.
