As more and more people across the UK continue to try and repay their credit card debts many are seeing a month by month increase in minimum payments as interest rates remain high. However, there is concern that many are not taking advantage of the options available to them. As we mentioned in one of our earlier post, the average credit card purchase interest rate now stands at a staggering 18.1% compared to a base rate of 0.5%. Surely now is the time to consider converting your credit card debt into a standard fixed term loan?

The problem that many people in the UK have at the moment is the fact they would rather bury their head in the sand and hope everything recovers in due course, but unfortunately this will not happen. Those stuck in the credit card debt spiral are unable to pay off their interest which then increases their credit card debt, increases interest payments and reduces the amount of capital they are able to pay off each month. In effect, many people across the UK are seeing their credit card debt increase on a month by month basis despite the fact they are paying off as much as they can with no new spending.

As always, professional advice should be taken before you switch any of your assets or convert any of your debts into loans.

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