Credit card payments should be ‘prioritised’
Consumers need to prioritise repayments in order to avoid increasing levels of debt, according to a leading financial services website.
As the UK's credit card debt continues to rise, the chief executive of Moneynet.co.uk has said that common sense should be used in deciding what to pay off first, advising those in debt to concentrate on their most expensive loan obligations.
Comparing student loans to high interest credit cards, Richard Brown said that graduates should not be "cavalier", since there is a "long windowfor such repayments.
He added: "Some people graduate with substantial student debt but it is a fact of life unfortunately, whereas carrying big wads of debt on a high interest credit card isn't."
Recent statistics from Credit Action showed that the UK's personal debt at the end of April totalled £1,436 billion, of which £54.9 billion was credit card debt, while interest repayments have "soared" to £94.3 billion over the last year.
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