Stats reveal UK consumers waste £3.2 billion on expensive credit card debt
UK consumers pay £3.2 billion per annum too much on expensive credit card debt annually[i], warns peer to peer (P2P) lending firm Madiston LendLoanInvest. This is despite a wealth of alternative finance options, like P2P lending, being available on the market that could reduce borrowing costs. Madiston LendLoanInvest has built a unique debt consolidation process into its peer to peer lending which gives lenders accurate information about the proposed loan and doesn't disadvantage borrowers in the calculation.
Annual credit card interest costs borrowers around £6.04 billion, based on an average interest rate of 17.1 per cent, with the typical UK consumer holding up to five cards each[ii]. If UK borrowers considered consolidating credit card debt with a P2P loan on a site like Madiston LendLoanInvest at around 8 per cent, then as much as £3.22 billion could be wiped off their credit card bills, leaving a drastically reduced debt cost of £2.82 billion per annum.
One borrower on the Madiston LendLoanInvest platform describes their experience: "Having seen the charges on my credit card bills, I decided to approach Madiston LendLoanInvest for a loan to pay-off the cards with the highest interest charges at 22 per cent and 25 per cent.My experience was very good with a high level of customer care. I've now paid off those high interest bills, replacing them with loans at a much more manageable 10 per cent."
Tim Simon, CEO at Madiston LendLoanInvest, says: "It's a shocking amount that is spent needlessly on expensive credit card interest. But what's really frustrating is that there is a better way that doesn't involve large financial institutions, that many people don't even know about. Ordinary people, like you or me, help by lending small amounts at sensible interest rates to creditworthy borrowers, replacing their expensive debt with a sensibly-priced P2P loan. Its a win:win – lenders benefit, borrowers benefit and the money goes back into the economy, so it helps the UK's recovery too.
"If you shop around, you can make your money work better for you. The internet can offer a valuable guide to the alternatives out there, like P2P marketplace lending, that can provide a more affordable solution in the long run," concludes Simon.