How to reduce your credit card debt without really trying

Posted in 'Credit Crunch' by Barry Stamp

30 November 2011

The latest lending figures published by the Bank of England show that the growth in credit card lending continues to fall. The 12 month growth rate, to the end of October, is now just 2.8%, indicating that in real terms, and with inflation at around 5%, we are relying less and less on the elastic plastic. We are now repaying credit card debt in real terms, compared to the past where the growth has been in excess of inflation.

Fewer of us are turning to credit cards to fund these difficult economic times and mortgage lending, and other unsecured lending figures are also broadly flat.

This will be partly fuelled by the increasingly attractive balance transfer offers being made by credit card companies, with 0% balance transfer offers now available for terms of as much as 15 to 22 months. Simply by transferring an existing credit card debt to a new balance transfer card means that all monthly payments are used to reduce the debt rather than to pedal water by paying interest. A long balance transfer term means that a really hard dent can be made in personal borrowings.

Our Multi Agency Credit Report monitoring service is by far the cheapest way of checking your credit report prior to applying for new credit cards – it’s free to trial for the first 30 days and then only £9.99 per month afterwards.

When you get your Multi Agency Credit Report we will tell you which lenders are likely to say yes to your applications, as we use your credit score, based on the contents of your credit report, to match up your credit standing with lender appetite.

Check your credit report now