'Fairer deal' for credit card holders could limit need for debt advice

21/01/2010

Price comparison website moneysupermarket.com has said those leading a credit card lifestyle should be given a fairer deal in order to avoid the need for debt help.

There are many advantages to owning a credit card, with many consumers using them as a budgeting tool and a way to spread the cost of their purchases.

Tobias Van Der Meer, the website's managing director, said it is important that most credit card holders do not pay interest on their balance because this is usually paid off every month.

"Only about one in three credit card customers actually use their card to borrow money," he commented.

"Even so it is vital that consumers are empowered and educated to use this form of credit responsibly and to manage their finances efficiently."

Mr Van Der Meers was responding to the government's consultation on credit cards, and went on to say that it would be fairer if consumers were able to pay off their most expensive debt first.

Moneyfacts said yesterday (January 20th) that credit cards are an "integral" part of the financial services industry.

Tags; Credit Card Lifestyle,

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