Our research has discovered that 87% of cardholders with debts from 2015 will begin 2016 in the red, owing an average £2,400 each.
It’s unlikely this debt will be cleared this year – on average, those with debts on their card think it will take 17 months to clear them.
Never paying off debt
Nearly half expect to still be paying off 2015’s debt by December 2016 and 6% can’t imagine ever being debt free.
Worryingly, around 10% of cardholders say they expect to become more reliant on their credit card this year.
Over two thirds are “concerned” about their level of debt and one in ten feel “extremely worried”.
What you can do if you’re struggling to repay your credit card
Nicolas Frankcom, money expert at uSwitch.com, says:
“Balance transfer cards with an interest-free period could be a lifeline for those needing some breathing space from debt. But those looking to transfer should do their research to find the right card by looking carefully at any transfer fees, not just the length of the 0% offer.
“If you can’t see a way out of your current level of debt there is help out there. Contact StepChange Debt Charity or the Money Advice Service for free and impartial advice to get your debt under control.”
It’s also sensible to check your credit report before applying for any additional credit like a balance transfer card. This should help you avoid being rejected for credit and damaging your score.
Find a balance transfer card
Balance transfer cards are a way of consolidating your credit card debts or avoiding expensive interest rates, there are a few things to look out for, watch the video below to find out more.
Or if you already know what you’re looking for, take a look at balance transfer cards now.