Credit card debt may be easier to clear following changes in the New Year
Credit card debt may be easier to clear following changes in the New Year
- Wednesday, 29 December 2010Consumers could find that it is easier to clear their
debt problems in the New Year as changes are being made to credit cards.
From January 1st, the most expensive debt on a credit card will be paid off first, which is set to benefit the 39 per cent of consumers who do not pay off their credit cards in full each month.
This could mean that
credit card debt is easier to clear as less interest will be accrued if the most expensive debt is paid off first.
The UK Cards Association also revealed that minimum repayments on cards will be recalculated to cover the interest, fees, charges and one per cent of the outstanding balance.
As a result even if a consumer can only afford the minimum repayment each month, their balance will still be reduced, helping them to pay off their
credit card debt.
Melanie Johnson, chair of the Association, said: "These voluntary changes deliver a number of positive benefits to the nation's 30 million credit card holders, giving them both increased control over their credit cards and added confidence in the way that they are managed by credit card companies."
Jasmine Birtles, founder of moneymagpie.co.uk, recently stated that people are becoming more open about their
debt problems.

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