Borrowers should repay card debt in 0% interest period
Published On 9 January 2007
Credit card borrowers should think beyond short-term interest free deals unless they are confident they can repay their debt during the initial nought per cent period, suggests a new report.Research from M&S Money has discovered that Brits repay less than one quarter of transferred credit card debt during nought per cent interest periods.
And while 51 per cent of credit card holders have now transferred a credit card balance (at an average of £2,763), the survey found that 75 per cent of the debt (at an average of £2,084) is still owed on card at the end of the interest free period.
It is men who are worst at repaying debt with males only clearing on average 17.5 per cent of their original transferred balances during the nought per cent introductory period.
Eddie Nott, Marks & Spencer Money spokesman, said: "Britain's borrowers have caught the balance transfer bug, however the majority are not making the most of their low interest deals and clearing their debt.
"We urge borrowers to opt for lifetime balance transfer offers unless they are confident they will repay their borrowings while it's cheaper to do so."
