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Uswitch comments on the FCA proposals to help millions get out of persistent credit card debt

Commenting on the FCA proposals to help millions of credit cards users get out of persistent debt Tom Lyon, money expert at Uswitch.com, says: “This is potentially good news for the millions of credit card users who are unable to get on top of their credit card debt and who receive little help from their credit card provider to pay off their outstanding balances.

“The danger with these proposals is that credit card providers may resort to prematurely cutting off customers’ access to credit to meet their regulatory obligations. Many people are reliant on their credit cards to make ends meet, and for these consumers, limiting their credit lines could throw them into even more difficult situations.

“The news that credit card users will have better control over their credit limits is also welcome. Our research shows that 19 million credit card customers have their credit limits increased without being asked – by an average of £1,300. A quarter of those customers have fallen into a spending spiral after the increase.

“Recent figures show that we are a nation of credit card bingers, racking up £20 million of additional debt each day, so it is important that the regulator strikes the right balance between ensuring consumers don’t fall into unaffordable debt, while still having access to vital funds.

“One of the best ways to ensure you aren’t being stung by high interest charges is to transfer your debt onto a 0% balance transfer card. Some introductory periods now extend up to 40 months or more, which can give those eligible some valuable breathing space to pay off their debt.

“If you are struggling to repay your credit card bill, speak to your bank and find out what they can do. If this doesn’t solve your concerns, you can get in touch with a debt charity such as StepChange, who will be able to help.”

Find out how you could save over £1,000 a year with Uswitch here.

FOR MORE INFORMATION

Rory Stoves
Phone: 020 3872 5613
Email: rory.stoves@uswitch.com
Twitter: @UswitchPR

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