Financial Services > Credit Cards > Credit Cards News

Credit card repayments longer than mortgage

Thu, 04 Sep 2008

uSwitch.com has found that consumers who utilise their credit card to pay for a holiday could be making repayments until 2030, should they simply pay the minimum monthly repayment .

The switching company found that 40 per cent of credit cards only require monthly repayment of 2 per cent. In the long run, the company say this could prove very expensive.

uSwitch use the example of a six night trip to Beijing, and found that the average credit card balance making minimum repayments wouldn’t be paid off until 2039. The head of personal finance at the firm, Simeon Linstead, reportedly commented:

"With the cost of living on the up and people being forced to tighten their purse strings, consumers will be more tempted to just make the minimum repayment on their credit cards and spend the cash on more pressing bills. However, as our research has revealed, those that opt to manage their credit card debt in this way could end up paying far more than they need to for every purchase made. We urge the credit card industry to set all minimum repayments at three per cent, we have long been calling for this, and it is long overdue."
add to favouritesnewsletterlink to this pagesend to friendpost comments

Link to this page

Copy and Paste the following HTML into your page.

Choose a credit card

Choose the perfect card

Choose the right credit card for you and apply with confidence.

Choose a credit card