Credit card debts: confusion over repayment order

18 December 2009

According to research by Nationwide Building Society, almost two thirds (63%) of credit card users still don`t understand the order in which their credit card debts are repaid, headlinemoney.co.uk reports.

Despite various measures taken to make the order of payments `more transparent` (such as a summary box, which provides `key product information`, including the order in which debt repayments are made), 18% of credit card customers think that the `longest outstanding debt is paid off first`, 8% believe the debts with the highest interest are paid off first, while 4% assume that the most recent debts are paid off first.

A full 67% of credit card holders believe that the Government should introduce measures to make credit card providers pay off a borrower`s most expensive debt first.

Commenting on the news, a spokesperson for Gregory Pennington said that "borrowers who are uncertain about any aspect of their debt should contact their lender to clear up the issue without delay".

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Gregory Pennington offer debt management plans as well as a range of other debt solutions. If you are worried about debt, contact one of our expert debt advisers now.

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