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Consumers ‘unaware’ of the effect of interest on debts
Tuesday, March 17th, 2009Credit card holders are unaware how much interest will be charged on their debts, an expert has said.
Head of personal finance at money website Fool.co.uk David Kuo explained that many people "don’t understand debt" or how "penal interest rates" can affect their finances.
Furthermore, debt advice was offered to consumers by Mr Kuo as he called for credit card holders to be more disciplined with their spending due to limit cuts by lenders.
He added that consumers should look to pay off more than the minimum monthly amount on their credit cards.
"If people pay off these credit card debts at the minimum rate it would take them many years to be clear of debt," Mr Kuo said.
This debt advice follows figures published by Abbey last week.
The bank revealed that 69 per cent of Britons have a credit card, with the average balance standing at £3,256.
By Rosie Park
