Tracker mortgage customers paying off credit card debt
By UK CreditCards.com
Borrowers using tracker mortgages are paying off credit card debts using the money they have saved from the Bank of England's low base rate, new research revealed.
Findings from a study by financial advice website Unbiased.co.uk revealed that over half of those consumers using a tracker mortgage are not taking advantage of the low base rate to increase their mortgage repayments.
However, the study showed that 38% of those not overspending are diverting their savings to pay off other debts, including credit cards and personal loan repayments.
Additionally, 12% said they are allowing the balance to accumulate in their current account while 17% are adding to their savings accounts.
Richard Winder, spokesman for Unbiased.co.uk, said: "We're encouraged by the large number who are using their repayment savings to erode their more costly credit card and personal loan debts."
Previous research from the firm revealed that the UK's credit card debt decreased by more than £4.9 billion in 2008.
Published: 2 April 2009
- Financial capability: Managing money and planning ahead – A recent report on financial capability based on six elements shows many Brits need to hone their financial skills. This short series will give tips on how to improve each area ...
- What we buy and how we spend: A decade of change – The Payments Council took a look back on the past decade in a February 2013 report, which found that Brits are splashing out on fun -- and moving toward a cash-free lifestyle ...
- Glimmers of optimism appear among financial gloom – With Christmas debt looming and warnings of a triple-dip recession in the headlines, you might think consumers are feeling pessimistic about their finances. But recent research shows otherwise ...