Brits 'need to clear credit card debt'

By Sarah Engle, Wed 13 Jan 2010 - Published in Credit Cards

Credit card users could save almost Ł550 if they move to zero per cent deals, but may need to find other ways to reduce their debt, it has been claimed.

Advice from price comparison service moneysupermarket.com recommended that the nine million Brits who paid for Christmas with a credit card start to look for ways to clear their debt.

The group said that one of the best ways to do this is find a new card with a zero per cent introductory offer, but pointed out that just four out of ten applications are currently being approved by lenders.

Peter Harrison, credit cards expert at moneysupermarket.com, said: "It is extremely difficult to switch cards at the moment so you need to be savvy about tackling your existing debts."

The website said that people should plan a realistic budget for repaying their debt and concentrate on clearing their cards as soon as possible.

Recently, Ed Bowsher, head of consumer finance at lovemoney.com, said that customers are using the Bank of England's historically-low base rate of 0.5 per cent as an opportunity to pay back money they owe on credit cards and mortgages.

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