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Credit card customers urged to make more payments

Tue, 09 Mar 2010

Consumers have been shown just how much money they could save by bumping up their payments a little on their credit cards .

According to moneysupermarket.com, the average outstanding balance of £1,989 would take 22 years and 10 months to repay if only the minimum of 2.5 per cent was paid every month.

However, if an extra £20 is paid per month, this would be cut by over 17 years, with the overall interest paid also coming down by a third.

Peter Harrison, credit card expert at moneysupermarket.com, accepted that many people were finding it difficult to stay on top of their finances, but urged them to consider increasing their payments.

He said: "Our calculations send a clear message to those who may also have some savings - simply by paying off a bit more every month, as little as £10 or £20, their overall interest bill and the length of time it takes to clear the balance entirely can be dramatically reduced.

Credit cards with longer zero interest periods, including those offered by Santander, could also help save consumers money.
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