Most people know that credit cards can attract very high interest rates, and this is why those that borrow on credit cards that are not interest free are always advised to pay off the balance as quickly as possible to avoid paying so much interest. However, there are still many people that are letting their credit card debts fester, and for the privilege they are paying hundreds of pounds or more each year in unnecessary interest.
A survey was recently carried out by price comparison site moneysupermarket.com and showed that on average Brits are wasting just under £300 a year each on interest charges that could avoided. On average credit card debts are being held for around ten months before they are paid off during which time hundreds of pounds in unnecessary interest is paid by the cardholder.
Officials from the company said that those with debt on their credit cards which they couldn’t pay off in one go could save a lot of money simply by transferring it to an interest free credit card and avoiding the interest charges on it. However, of those polled as part of the survey nearly 25 percent said that they either didn’t know how to transfer their balance onto another card or that they simply couldn’t be bothered to do so.
One official said: “If you are in this situation and have a debt you need to shift, you need to look at all of your outgoings and try and get a target for paying your debt down. The longer to take to pay off your balance, the more it will cost you in interest. Anyone looking to switch cards should always check which card is most suitable for their personal circumstances as different lenders will treat each applicant differently.”
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