Tuesday 14th of April 2009
Consumers with debt management problems have been urged to tackle elements that are charging the highest interest first.
According to the Motley Fool, many people are taking advantage of lower interest rates to overpay on mortgages.
But director at the website David Kuo advised those drawing up debt management plans to focus their attention on more expensive forms of borrowing.
Noting that credit cards can charge particularly high levels of interest, he remarked: "No matter how small that credit card debt is in comparison to the size of your mortgage, you have to try and repay that credit card bill as quickly as possible."
Mr Kuo also observed that debt consolidation loans can be used to lower the level of interest that is being paid, although those who owe too much to be able to secure one of these may need to seek IVA advice.
His comments follow MoneyExpert.com findings that average credit card interest rates are now 1.1 per cent higher than they were two years ago, despite the Bank of England slashing its base rate.
