Credit card debts could be repaid 14 years earlier
Credit card debts could be repaid 14 years earlier
- Thursday, 29 October 2009Consumers could have their
credit card debts repaid more than a decade earlier than expected thanks to new government legislation.
That is according to Moneysupermarket.com, which suggests that
credit card debt could be cleared up to 14 years quicker, saving the consumer an average of £2,400.
The new government proposals include the addressing of negative payment hierarchies and an increase in minimum monthly repayments.
Peter Harrison, credit cards expert at the price comparison website, said that consumers mostly found themselves in difficult financial circumstances as a result of a lack of knowledge of the credit card business.
He commented: "The lack of understanding of the current repayments hierarchy system by consumers means many end up paying a huge amount of interest and the debt sentence can last for years - decades in some cases."
The Consumer Credit Counselling Service recently came out in support of the initiative.

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