31 May 2007
Transparent statements and an improved perspective of their financial situations have caused consumers to reassess their spending habits, resulting in them using their credit cards more wisely.
According to the Consumer Credit Counselling Service (CCCS), more consumers are now avoiding an ongoing spiral of debt by paying more than just the minimum required amount off their cards each month.
Spokesperson Frances Walker noted: "There are around 50% of people who pay their cards off in full every monththe majority of people do use credit wisely."
Ms Walker continued, saying that more consumers were now realising that paying off the minimum amount each month was "a mug's game" since in most cases it led the consumer into debt.
"The main thing about people who have either store cards or credit cards is not just to pay the minimum amount back every month," she advised. "They must pay more than that back. So it's better for youto clear the balances before you go on using the card."