Thursday, February 22, 2007
Category:
Consolidation
Recent research from MoneyExpert.com shows that one in every seventeen British adults has five or more credit cards in their wallets.
It is said that 2.7 million Brits have built up large debts or card ‘tarted’ so frequently that they now have at least five each.
77 per cent of the adult population in the UK own at least one credit card, and over half say they have one or two credit cards. Around a third of all credit card holders own three or more credit cards. The research shows that men are most likely to have credit cards, with twice as many men that women having five or more cards to chose from.
Regionally, Londoners are slightly more reliant on credit cards than others in the UK, with 28 per cent of those living in the capital having three or more credit cards. Those living in the South come second, with 27 per cent admitting they own three or more credit cards. People living in the North are least likely to have three or more credit cards, with 23 per cent admitting this is the case.
Commenting, Sean Gardner, Chief Executive of MoneyExpert.com, said: ‘The British love affair with credit cards continues. It is healthy if people are switching cards and clearing debts but people are kidding themselves if they rely on moving from one card to another just to avoid repaying their debt. Long zero per cent credit card deals are attractive for a variety of reasons and consumers shouldn’t be afraid to take advantage of them. But the number one rule is borrow what you can afford to pay back.’
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Homeowners with debt spread across multiple credit cards could consider consolidating this with a debt
consolidation loan. One of many options to pay off debt, debt consolidation loans can be repaid over a term of 5 to 25 years. Debt consolidation loans wrap multiple debts into one straight forward monthly repayment. Worries about which credit card bill should be paid and when can be lessened as you’ll know the exact date and amount payment will go out each month. If opting for a debt consolidation loan, it is advisable to close credit card accounts once the debt has been cleared. When taking a debt consolidation loan, it is however important to remember that repaying borrowing over a longer term may increase overall interest charges.
