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Borrowers 'should be tactical about credit card debt'
Posted by Mark Cunningham
Consumers who have debt on credit cards should make sure they transfer their balance when their zero per cent deals expire.
This was the message from moneysupermarket.com, which warned that those who fail to do this may end up paying considerably more in interest.
On a balance of £2,000, cardholders could see the amount they pay in interest rise by £1,456 over the lifetime of the loan, the price comparison site claimed.
It also noted that people have less choice than they used to when it comes to switching their debt.
Head of banking at moneysupermarket.com Kevin Mountford commented: "An interest free balance transfer card can be a great option for consumers with existing debt who need flexibility."
However, he added that consumers should always do their best to begin paying off what they can as well.
The cost of borrowing may rise further when the base rate of interest - which currently stands at 0.5 per cent - increases.
06/05/2010 15:40
News category: Consumer