Credit Cards could take more than 30 years to clear

06/09/2008

Credit card holders could be paying off their balances for longer than they think.  According to a latest report by USwitch some credit card holders could take as long as 31 years to pay off a balance of £1,384. 

This figures also confirmed by USwitch to be the average debt a UK credit card holder has.  The study set example of a scenario where a typical card holder with a debt of £1,384 who makes only their 2% minimum credit card payment will be paying their credit card for 31 years.

The study also highlighted that out of 10 credit card lenders only four require a 2% minimum credit card payments instead of a historic 5%.  Most credit card users are aware that the more they pay back per month the quicker they will pay off their credit card as ultimately they will accrue less interest and pay more of the capital that has been borrowed.