More than half of consumers are paying interest on credit cards

New research by TotallyMoney has shown that more than half (54%) of customers with an outstanding monthly credit card balance are paying interest, indicating that it could be costing consumers £1,831 by not transferring a credit card balance.

The esearch shows customers are 31% more likely to be eligible for a credit card now than they were at the beginning of the pandemic, with a customer’s average interest-bearing monthly balance is £2,898, which means that not switching to the market-leading offer could cost an extra £1,831.

TotallyMoney is warning that customers are carrying almost £30 million in interest-bearing credit card balances‖, costing them millions in interest every year. With surging inflation massively increasing the cost of living in the UK, and the Bank of England’s interest rate rise making borrowing more expensive, the pandemic is showing no signs of releasing its squeeze on people’s finances.

Alastair Douglas, CEO of TotallyMoney said “As we enter 2022 we should all be making the New Year resolution to avoid paying unnecessary interest. Especially at a time when many are feeling the squeeze of the soaring cost of living as the inflation rate hits a 10-year high.”

“When it comes to credit cards, we know loyalty doesn’t pay. And with swathes of introductory offers coming to an end each month, customers can soon find themselves paying interest on any outstanding balances. One way to avoid this is by shifting interest-bearing debts to a balance transfer card.”

“While balance transfer cards usually come with a small fee, customers can still save hundreds, if not thousands of pounds. With customers being 31% more eligible for cards than at the start of the pandemic, and lenders making even longer offers available, now could be time to grab a great offer.”