Those worried about debt problems urged to avoid credit cards
Those worried about debt problems urged to avoid credit cards
- Monday, 4 April 2011Brits worried about needing a
debt solution in the future should try and avoid borrowing money on credit cards.
That is because they often charge high interest. As a result, they have contributed to the spiralling levels of debt in the UK.
Such is the opinion of Ed Bowsher, head of consumer finance at lovemoney.com, who also added that there is now an awareness of some merchants adding surcharges to payments made using a credit card.
He said: Credit cards have definitely contributed to the rising levels of debt over the last decade.
"The problem with credit cards is they're a very easy way to borrow, but they're also very dangerous because the interest rates are normally so high."
If interest rates are high, it takes longer to become
debt-free as more money is added to the original debt, he added.
Mr Bowsher made these comments after Credit Action revealed that £1.156 million is spent on credit cards each year.

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