Consumers need to be aware of interest rates to help them avoid debt problems
Consumers need to be aware of interest rates to help them avoid debt problems
- Tuesday, 15 February 2011Consumers concerned that they may end up needing a
debt solution if they borrow too much should check the interest rates on any credit they obtain.
This advice applies to anyone thinking about taking out a credit card or a loan as the interest rate could help contribute to
debt problems in the future.
Richard Sorsky, money advice co-ordinator at the UK Insolvency helpline, stated that many people seeking
debt advice have been caught out by interest rates.
He said: "People still don't understand the interest element. Although it's well stated, people are always with the attitude, 'I don't care about the interest rate because I always pay my debt off every month anyway'."
However, this attitude can be dangerous as people may intend to pay off their debts in full each month but an unexpected expense may prevent them from doing so one month, Mr Sorsky added.
According to unbiased.com, Brits will spend the first 45 days 2011 working just to pay off the interest on their debts.

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