Britain is a nation of debt jugglers, constantly moving large balances between cards until we hit ‘money maturity’ in our fifties and decide to stop playing a game of loans.
According to a survey from the AA, 5.4 million people (11%) have transferred balances between credit cards.
On average, people have made three transfers. 2.6 million (20% of balance transfer card users) have made more than 5 balance transfers in the past year.
People are juggling an average of £2,353 worth of debt between cards and 1.6 million (10%) Brits are playing the game with over £5,000 worth of debt.
The research reveals that it’s not until we are in our fifties that we reach money maturity, with a long term plan in place to pay off our debts.
A fifth of adults (21%) said they would like to pay off their borrowing but are not currently in a position to do so.
A spokesman for the AA, said; “Of those that are borrowing, 14 million (47% of those in debt) do not know how much interest they are paying in total. Whilst low cost loans and balance transfers can be a good way of consolidating debt, many risk paying a price for missed payments.
“People need to be aware of the rules of the game, knowing how long introductory rates last and what might cause them to end early, for example missing a payment. Setting a calendar reminder for when your introductory rate ends can ensure you don’t sleep walk into paying higher interest and experience an unwelcome addition to your monthly commitments.
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