Consumer Agency launches guide to clearing credit card debt

The National Consumer Agency (NCA) today launched an online guide for consumers who are struggling to clear their credit card debt.

It comes as recent statistics from the Central Bank of Ireland shows that the average debt per credit card in Ireland is €1,274.

The ‘ditch your credit card debt’ guide contains a clearing your credit card ready reckoner, an online tool, that consumers can use to work out how long it will take to pay off their credit card debt based on the card they have and their current repayments.

For example, if you have credit card debt of €1,000 and the APR on your card is 17%, it will take you two years to clear your debt if you pay off €50 a month and you stop using the card completely. If you increase your repayments to €100 per month, you could clear your balance in 11 months.

“Recent figures show that levels of credit card debt remain stubbornly high," said NCA Chief Executive Ann Fitzgerald.

"Many consumers who are in financial difficulty correctly prioritise paying their mortgage, electricity and gas bills over reducing their credit card debt.

"However, those who have more flexibility in their budgets should try to clear their credit card debt as quickly as possible and avoid making just the minimum repayment.

"Credit card debt is one of the most expensive forms of debt, which continually clocks up interest if you don’t pay your balance in full."

The ‘ditch your credit card debt’ guide also has a credit card comparison so consumers can see what other cards are available in the market, including the interest rate charged and any lower interest rates that apply to balance transfers.

The guide, including tips on how to reduce your credit card debt, is available on nca.ie.