Credit card users could be collectively wasting up to £2.3 million every year in interest by keeping their balance on an existing credit card, it has been claimed.
Research from Moneysupermarket.com found that 46 per cent of credit card users don't pay off their balance in full each month. It also found that the average credit card debt takes 10 months to pay off and 3 per cent of consumers only pay the minimum amount off their balance each month.
Two-thirds of respondents said they have never switched their balance to a zero per cent interest card, with 24 per cent saying they could not be bothered, didn't know how or did not realise it was an option. With the average UK credit card balance at £1,765, a balance transfer to an interest-free card could save credit card users £279 a year in interest payments, according to Moneysupermarket.com.
Kevin Mountford, head of banking at moneysupermarket.com, commented, "As the nation's wallets continue to be squeezed by higher living costs, it is crucial consumers look to pay off their debt quickly and efficiently to prevent additional interest from accruing. Anyone with an outstanding balance on their card should consider switching to a product offering zero per cent interest on balance transfers."
