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Needless credit card payments over £9 billion

Needless credit card payments over £9 billion

Category: Credit cards

Updated: 13/03/2009
First Published: 13/03/2009

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Britons are paying a staggering £9 billion in unnecessary credit card interest repayments each year.

Two thirds of the country's population owns at least one credit card, on which they've racked up an average debt of £3,256. Despite their relative availability, however, zero per cent deals are utilised by less than one in four (23%) people.

The research by Abbey has shown that while 36% of people have no existing debt or pay off their outstanding balance every month, four in ten of us have held debt on their card for over a year.

Despite these sky high levels of personal debt, just one in five plan to transfer their balance to a zero per cent deal over the coming months, meaning that £9 billion will be frittered away by consumers in needless credit card repayments this year.

"At a time when people are having to manage their finances more carefully, transferring to a zero per cent deal is a sensible way of ensuring your money goes further," said Callum Gibson, head of credit cards.

Check out Moneyfacts' comparison tables to find a zero per cent credit card today.

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