It has recently been revealed that over 6 million Brits have had an outstanding credit card balance for more than a year, according to report from MoneySupermarket.com.
Even more shocking is the 14% that say they have had outstanding credit card debts for over five years! Almost 1 in 10 of people admit to only paying off the minimum amount each month. The average amount of time the debt is on a credit card is a huge 21 months, which is obviously only going to drive people further into debt.
As we know this is a dangerous trap to fall into as the total interest charged means that the amount these people will eventually pay can be astronomical.
Head of banking at MoneySupermarket.com, Kevin Mountford, said: "Our research reveals credit cards are still playing an important role in the nation's finances, but in the current climate, it's more important than ever for consumers to understand the cheapest way to borrow on their cards and avoid getting stung by high interest rates.
"Credit cards are not designed for long term lending and anyone with an outstanding balance on their card should consider switching to a product offering zero per cent interest on balance transfers, allowing them to pay back the debt without incurring any further interest charges."
He continued: "However, as with any interest free product, missing a payment or paying late will mean reverting to the card's typical APR, negating any benefit to the consumer.
"The most important thing is that consumers understand the implications of borrowing on a credit card and that paying back the minimum amount each month will dramatically increase the total amount they pay back in the long run."
Credit card debt is one of the biggest causes of unsecured debt in the UK, with a large amount of the problems we see here at Debt Free Me caused by out of control credit card debts.
If you are struggling with debt, credit card debt or other types, then you need to talk to a trained debt advisor, or you risk falling further into the debt trap. Please don't hesitate to call us on freephone 0800 988 7701 or complete the simple contact form and we will get back to you as soon as possible.
