Credit card customers ignoring their balances

A new study has found that consumers are not reviewing their credit cards or loans as often as they should. It showed that nearly half of credit card customers and 86 per cent of loan customers did not review their balance or monthly payments in the last year, even though almost 90 per cent of UK adults say they are confident about how they manage their personal finances .

The research, by Capital One, also found that more than half of consumers have not checked their credit rating, despite free credit reports being available online, with 21 per cent being unaware that missing a payment on a loan, credit card or other borrowings can negatively affect your credit score .

Capital One has also launched campaign called Money Made Clearer, which involves short animated films that provide practical advice regarding personal financial management, in an attempt to persuade consumers they should be more aware of their credit card and loan debts .

Brian Cole, managing director of Capital One, commented It is encouraging that consumers believe they are on top of their finances but perhaps they need more support in order to ensure they do not make avoidable mistakes. We hope that our approach, which combines animation and humour, will help more people to think about their finances and take simple positive steps to improve them.