Those with high levels of credit card debt should pay off more than the minimum payments so they can focus on becoming debt free as quickly as possible.
Lisa Bachelor, consumer affairs correspondent at the Observer newspaper, advises consumers with credit card debt to focus on paying this debt off as credit card lenders seem to be upping interest rates. She sites Capital One as an example who are increasing interest rates on their existing customers’ credit card debt by up to 7% next month.
Bachelor writes “It is all too easy with a credit card to make no more than the minimum payment each month. Yet with mortgage rates becoming cheaper for lots of borrowers, a credit card or loan is likely to be your most expensive debt. Paying it off early will not only save you sleepless nights worrying about your debt, it will also save you a lot of money.”