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It May Take 31 Years To Pay Off Your Credit Card!

As the mortgage sector continues to hog the limelight it seems as though there are things happening behind the scenes in the credit card industry. A report by the well respected uSwitch website has highlighted the fact that four out of ten credit card companies only ask for a minimum 2% payment each month as oppose to around 5% in the 'good old days'. It seems that they are being very understanding and helpful, but why?

The bottom line is that the less you pay back the more interest they will charge you and the longer you will be with them. The banks of the UK are desperate to retrieve as much of the money they lost in the charges debacle and begin to fill their coffers back up again.

The same report also confirmed that the average UK credit card holder has a debt of some £1,384 and if they pay back just 2% a month they will actually need nearly 31 years to pay back all of the capital and interest accrued. This is a scary fact but one which is based on sound figures and the direct result of the credit card companies relaxing the rules. Remember, there is no such thing as a free lunch!

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