Do You Have Credit Card Debt?
Posted on Nov 11, 2024Credit Card debt is on the rise. In November 2023, credit card borrowing doubled compared to October 2023. UK adults relied on their credit card for £2 billion worth of spending! An estimated 33.8 million people use their credit card every year, but credit card debts can be expensive, and you may be paying a lot more than you realise.
How much is your credit card costing you?
The average credit card APR in the UK is more than 24%, but some people will be paying more than 50%! Your interest rate depends on your credit score and credit history, meaning if you have a lower credit score, you might end up paying even more. Many banks and building societies set your interest rate based on how well you’ve managed other accounts with them and your overall credit history. This means that if you have a poor credit record, your rate will likely be higher than average.
We could help
Retail CU could have significantly cheaper rates than what your credit card has to offer! Before reaching for the little piece of plastic, check out if opting for a Retail CU loan could save you money!
Personal Loan
Our Personal loan allows you to borrow up to £10,000 at great rates from just 19.9% fixed APR – that’s much cheaper than the average UK credit card interest rate of 24% (but remember, you may be paying more!).
For example, with a £10,000 Retail CU Personal Loan, repaid over 4 years at 19.9% fixed APR, you would repay £295.32 a month.
Let’s compare this to the average UK credit card rate of 24%. Keeping repayments the same as the Retail CU Personal Loan of £295.32 a month. If you used your credit card to borrow £10,000, you would pay more than £5,600 in interest AND you’ll be repaying your credit card debt for 5 extra months!
Advantage Loan
Our Advantage Loan helps you borrow up to £25,000 at advantageous interest rates. You may be buying a new car, decorating your home, or looking to book the holiday of a lifetime – whatever the purpose, you could save money by choosing a Retail CU loan rather than your credit card.
If you borrowed £25,000 with a Retail CU Advantage Loan, repaid over 58 months, would cost £3,694.13 in interest.
If you chose to borrow £25,000 on your credit card at 24% APR, your minimum repayment would increase to £702 (that’s 41% more than you would pay with Retail CU!) AND repay more than £15,400 in interest. By opting for a Retail CU Advantage Loan, you could save yourself more than £11,700 in interest!
Swap & Save Loan
If you have a remaining balance on your credit card our Swap & Save Loan could help. You could borrow between £2,000 – £25,000 to tidy up your finances. Consolidate your outstanding borrowing into 1 manageable repayment, saving you time, effort and money!
For example, you may have a credit card balance adding up to £10,000. A £10,000 Swap & Save Loan, repaid over 3 years at 16.9% fixed APR, would cost £350.09 a month and you’d pay just £2,603.28 in interest.
Let’s compare this to if you kept repaying your credit card debt at 24% APR. You’d pay more than £4,200 in interest AND you would be repaying for 4 more months compared to if you chose a Retail CU Swap & Save Loan.
With some people paying more than 50% interest on their credit cards, it is more important than ever to see if you could save money with Retail CU. Before reaching for the plastic in your wallet, remember a loan with Retail CU could help you save £££!
It isn’t too late to save if you have already opted to use your credit card! Our Swap & Save Loan can help you consolidate your balances, tidy up your finances and save you money.