Consumers `need to be careful about credit card debt`

10 September 2009

Consumers need to be cautious when moving their credit card debt around, Confused.com has said.

According to the price comparison site, while switching to a cheaper card can help with reducing debt, people need to minimise the number of times they apply for cards they are not accepted for.

It claims that, as the rules around lending become more stringent, attempting to switch credit cards can be a "time-consuming and frustrating exercise" and unsuccessful attempts can leave "unnecessary credit footprints".

However, Joanne Garcia, head of credit cards at Confused.com, stated: "Switching to a cheaper credit card and/or paying back just a small extra amount each month can be really effective, especially if you are currently paying off just the minimum each month."

The website has launched a new tool to help consumers see how likely it is they will be accepted for certain credit cards.

Meanwhile, research recently conducted by YouGov for Financial Planning Week 2009 found that 40 per cent of people polled reported they need to lower their levels of debt.

Fees payable when continuing service is provided. Repaying debt over a longer period may increase the total amount to be repaid. Calls are recorded and are usually free from UK landlines. Mobile phone users may be charged and should check with their service provider.