Debts on credit cards that amount to between £1,800 and £2,000 may take more than ten years to clear, if just minimum repayments are met.
This is according to This is Money’s Simon Moon, in response to a reader’s letter in which debts of £2,000 on Barclaycard Platinum and £1,800 on Natwest Gold cards were admitted.
Taking into account typical interest rates, Mr Moon noted that – if only the minimum payments are made – the amount of time taken to clear the Barclaycard total would be 15 years and eight months.
Referring to the Natwest Gold account, he observed that 26 and a half years would be required to be free of the debt.
“That’s a pretty sobering thought,” Mr Moon said, adding that plastic will be under even greater pressure as Christmas draws nearer.
However, Britons can reduce Christmas debt if they follow moneysupermarket.com’s recent advice. The price comparison site suggested that people steer clear of store cards, set budgets and do some internet research.
By Sarah Adie