Thursday, January 25, 2007
Category:
Consolidation
Recent news from MyCallcredit stated that January is payback time for the UK’s 31 million plus credit card users who spent an estimated £11.4 billion on credit cards over the festive season. This is an average of £360 per cardholder.
MyCallCredit suggest that consumers should try to pay off more than the minimum amount on card balances, aiming for at least 10 percent. Priority should be given to pay off cards with the highest interest rates first. Consumers should also be wary of running up further debt on credit and store cards and could consider using savings to pay off credit card balances as the interest received on these is unlikely to be more than the interest paid on credit cards.
Commenting on Christmas spending MyCallCredit spokesperson Melanie Mitchley said ‘There is an enormous temptation to overspend at Christmas and worry about it later. With the unexpected interest rate rise pushing up the cost of debt it is more important than ever that people monitor their debt situation and budget to pay back any overspending as quickly as possible. Our guide provides a good starting point for those who are just waking up to a Christmas debt hangover.’
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Consumers who used credit cards for spending sprees over the festive season and now have high balances to pay on several credit cards, could consider consolidating these with a debt
consolidation loan. Debt consolidation loans will spread repayment over a term of 5 to 25 years. It is however important to remember that repaying borrowing over a longer term will increase overall interest charges. One of many options, a debt consolidation loan will reduce the need to juggle several monthly repayments. With a debt consolidation loan, you’ll know the exact date and amount that will be debited from your account each month.
