Recent statistics produced by CreditAction.org show that there was £53 billion of credit card debt in February 2009. The collective credit limit on UK cards is a rather alarming £158 billion; this equates to an average limit of £5,129 per person. Individuals struggling to clear debt can resolve their money problems in a fraction of the time via a series of interest-free credit card balance transfers.
Making the Minimum Monthly Repayment on Credit Card Debt
CreditAction.org believes that the average interest rate on credit card debt was 17.92% in April 2009. Making the minimum monthly payment fails to clear debt quickly enough. For example, a consumer that owes £5,000 pays 2 per cent of his outstanding balance each month. He proceeds to pay £1,200 each year, yet only clears £304 because £896 of interest has accrued.