Are you wasting money on your monthly credit card interest payments?

Studies have shown that thousands of people are wasting money unnecessarily each month on their credit card interest payments. This is despite the fact that they have money left over in their credit accounts. In fact the average person tends to carry over around £1,137 each month when they have just under £1,000 left in their current account.

The interest that is building on the credit cards is thought to total around £3 billion each year. So why do we allow these interest payments to build and cause us financial difficulty when we have money left over in our current accounts which could potentially pay for it?

The main reason seems to be because we are living in a time where saving is everything. We are constantly being told to save as much money as we can. Whilst this is obviously important, it does not make much sense to save money which gains interest of around 6 percent each year when you have interest building on your credit card at 15 percent a year.

So the answer would be to pay off more of your credit card balance rather than putting it into savings. Don’t get me wrong, it would still be a good idea to save some of your money, but just a smaller portion until you have paid off your credit card. After all, why stay in debt when you really don’t have to? Paying off more than the minimum on your credit card balance every month is definitely advised. The sooner you pay off the credit card balance, the more money you can put into savings.

Overall you really do need to prioritise your finances. If you are wasting your money on interest payments on your credit card then there is just one thing for it – pay it off!