Confused.com issues debt repayment advice
Credit card holders can make “staggering” savings by paying off more than the minimum repayment each month, Confused.com claimed this week.
A credit card debt of £5,000 could take up to 36 years to pay off for consumers paying the minimum repayment, the price comparison site said.
Paying back an extra £10 per month would reduce this to 16 years, and £50 per month would cut it down to six years.
Confused.com said any consumers looking to reduce their debt burden should focus on paying off the most expensive debt first, such as credit card debt and personal loans.
Switching to a cheaper credit card can also help consumers reduce debt, the site claimed.
“Now is the time to take control over your debts,” said Joanne Garcia, Confused.com head of credit cards.
“It’s sensible to start by paying off the most expensive debt first, so don’t waste this opportunity to get rid of those costly credit cards.
“Switching to a cheaper credit card and paying back just a small extra amount each month can be really effective, especially if you are currently paying off just the minimum each month.
“If you can’t switch to a cheaper credit card, you can still make staggering overall savings by making more than the minimum repayment every month.”
Confused.com recently launched a new tool that allows users to see how likely they are to be accepted for a credit card without impacting their credit rating.