Consumers encouraged to use zero per cent interest cards to avoid credit card debt
Consumers encouraged to use zero per cent interest cards to avoid credit card debt
- Tuesday, 14 December 2010Consumers are being encouraged to use a zero per cent purchase credit card in order to avoid accruing
debt problems this Christmas.
According to moneysupermarket.com, two-thirds of credit-card holders are missing out on zero per cent rates of interest by using a standard rate credit card.
The firm has also predicted that at least half a million Brits will take over a year to become
debt-free after Christmas.
Kevin Mountford, head of banking at the price comparison site, said: "It's all about borrowing smart, so credit card users should ensure they are either paying as little interest as possible, or using a product that rewards them for spending."
He recommended consumers to use a cash back card if they will be able to pay off the debt in full after one month as they reward shoppers with cash but have high interest rates.
LV= Insurance recently revealed that parents in the UK are planning to spend £2.2 billion collectively on their youngsters this Christmas so using a credit card could be risky.

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