Wednesday, February 23, 2011
Category:
Consolidation
According to moneysupermarket.com, credit card users who let debt sit on their existing credit card are wasting £2.3 billion per annum in interest payments.
The comparison site has revealed that a survey of 2,007 UK adults, conducted by Opinium Research, uncovered that 46 percent of credit card users do not pay off their credit card in full. In fact, the average debt is reportedly held for 10 months before it is repaid. Findings have shown that 3 percent of credit card holders are only paying the minimum balance each month.
Furthermore, moneysupermarket.com has revealed that 64 percent of credit card users have ‘never transferred an existing balance onto a zero percent balance transfer card’. It was found that 24 percent ‘could not be bothered to switch, did not understand how or did not know they could’. However, it has been pointed out that by switching to an interest free product, these borrowers could potentially save themselves £279 in interest during a 12 month period.
With findings suggesting that 17 percent of credit card users are ‘worried or very worried about their debt’, moneysupermarket.com is advising consumers to pay off their debt ‘quickly and efficiently to prevent additional interest from accruing’.
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Homeowners who have accumulated on credit cards could consider tying it all up with a
secured loan. One of many finance options available, a secured loan for consolidation could allow borrowers to replace multiple, expensive credit card repayments each month with a single monthly repayment. This new monthly repayment could even be lower than the sum of current outgoings, thereby freeing up useful money each month. 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.
