Brits ’stalling’ over debt repayment

Posted 2008-01-7

An estimated 2.6 million Brits will mark the start of the New Year by transferring the credit card debts they ran up over the festive season, a new study has predicted.

MoneyExpert.com says that the figures reflect a worrying trend in which consumers are focusing solely on minimising interest repayments rather than tackling the key issue of excess borrowing.

It noted a further 6.6 million credit card customers are planning to stick with their current provider, meaning they face an average interest rate of 16.82 per cent of their Christmas purchases.

Sean Gardner, chief executive of MoneyExpert.com, said many Brits need to reassess their borrowing practices, especially in light on the ongoing credit crunch which will see thousands denied new credit cards.

“It is good to hear that people are taking action but worrying that millions will simply add their Christmas debt to their existing debt,” he said. “Piling debt on debt is simply adding to the spiral of increasing financial trouble.”

New research shows that the number of cards offering zero per cent balance transfer deals has risen from 149 at the start of 2006 to 169 today.

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