Do you know how much interest you are paying on your credit card?
According to recent research commissioned by The Communications Department, 6 in 10 of the Irish population do not. Among those surveyed who did know the interest rate they were paying, there was still a lack of clarity and understanding as to how the interest rate actually works.
Credit card interest rates in the Irish market typically range from 13% to 23% so we need to keep a close eye on how we manage our credit card spending.
Savvi’s Top Tips
- Aim to pay off more than the minimum repayment – the maximum amount you can afford to pay. If you only pay the minimum repayment every month, you’ll pay a lot of interest and it could take years to clear the debt.
- Never miss a credit card payment & stay below your limit as much as you can – these can be red ﬂags to potential future lenders if/when you need to borrow for a mortgage, car etc.
- In order to ensure you don’t miss payments and you are staying under your limit, track your spending every month.
- Request your credit report. You can ask for a copy of your credit history any time, free of charge from the Central Credit Register
- Talk to us! If you feel like your credit card debt has gotten a little out of control, then get in touch and see how we can help. Our debt consolidation loan, ‘Be Savvi’ for example could be a good solution to help balance things out for you.
Research carried out by independent market research company, iReach Insights, in late December 2018 and commissioned by The Communications Department.
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