Credit Card companies reducing the time and offers of 0% interest
According to a recent article lenders are slashing the amount of time on their 0% interest deals and increasing the payments after the introductory periods are over.
When it comes to credit cards (the number one type of unsecured debt in the UK) a lot of credit card owners are looking to extend the amount of time they have to repay their credit card debt through moving the debt from an interest paying card to one with introductory 0% special offers. The longest periods of 0% are now 29 months (majority are only 3 – 6 months) compared to 43 months in 2017, the balance transfer fees have increased and the interest charged after the introductory periods are averaging at 30%+.
With growing uncertainty (consumer confidence remains as -8 points) and with British consumers owing a total of £72.6 billion in credit card debt alone (source) the problem is that the number of those who are on the introductory offers that quickly expire could cause issues for millions of families across the UK.
The Executive Chairman Dr Roger Gewolb of FairMoney said “We are in a whirlwind of debt and consumers are juggling what they own onto credit cards. This can be a dangerous game to play in the medium and long term, with introductory rates quickly becoming high-interest, making them difficult to pay off’.
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