41 per cent of UK credit card holders still have an outstanding balance on their credit card after a year, this equates to 6 million UK credit card holders.
Rather alarmingly 14 per cent of credit card holders keep debts on their cards for longer than 5 years.
The research by Moneysupermarket.com also revealed that over 3 million people say they pay just the minimum amount off their credit card balance each month, which could mean that these people cannot afford to make higher debt repayments.
Kevin Mountford, Head of Banking at moneysupermarket.com, said: “Our research reveals credit cards are still playing an important role in the nation’s finances, but in the current climate, it’s more important than ever for consumers to understand the cheapest way to borrow on their cards and avoid getting stung by high interest rates.”
Understanding how credit card debts are repaid and just how much interest is charged is vital for consumers, especially considering the current economic climate. The average length of time a credit card debt is left unpaid stands at a massive 21 months.
This is when credit card debts can become a problem for some people. Craig Gedey, Marketing Manager at Debt Advisory Line said: “People may think that they are spending small amounts occasionally each month on their credit card. However, the interest and in some cases additional charges, on outstanding balances soon add up, increasing the total amount to repay.”
“In this situation of interest charges increasing the total amount to repay combined with customers repaying only the minimum amount each month it is no surprise that credit card debts are being left unpaid for nearly 2 years.”
“Anyone struggling to juggle bills like this should seek professional debt management advice. At Debt Advisory Line we help people repay their debts by negotiating with creditors to try and have interest and charges frozen.”
Visit www.debtadvisoryline.co.uk for more details or call 0800 157 7254 today.