Nationwide encourages festive borrowers to switch credit cards

05 January 2006
Nationwide Building Society is encouraging those people who borrowed money to pay for Christmas to now switch to a better credit card or loan rate.

New research from the financial institution showed that around a quarter of Britons are expected to still be paying for Christmas well after the end of March, with the majority of these having taken out a personal loan for the holidays or placed festive season expenses on their plastic cards.

Nationwide executive director, Stuart Bernau, encouraged those people who chose to borrow money to fund Christmas to review how they will now pay off that debt, and to check "if they could get a better deal by switching their credit card, or taking out a personal loan".

The lender also revealed that borrowing at the cheapest rate available and consolidating debts over a fixed period can be a low cost structured way to repay Christmas borrowing.

Consumers are also being encouraged to check how the payments made to reduce their credit card bills are used. According to Nationwide many credit card providers apply payments to the most expensive purchases last, not first, so the consumer ends up paying more.

Nationwide, HSBC and First Direct are all companies that pay off the most expensive debt first, saving the consumer money.

Nationwide predicts that there are ten million credit card accounts where unfair orders of payment cost British consumers around £500 million each year.

To read more about credit cards, click here.


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