Showing restraint 'will cut credit card debt'

People who show restraint when paying off their credit cards will wash away their debt, according to a consumer finance organisation.

Moneyextra has claimed that simply stopping spending on plastic will see consumers have an immediate impact on their bills, while a zero per cent card can also make a large dent.

Budgeting is also a useful technique for those looking to clear their accounts, with a reasonable amount of money set aside for spending keeping people on track to wipe out debt, it added.

But those with savings and debt may be making a mistake, as the company suggested that money in such accounts could be used to pay off more than the minimum amount each month, thus further cutting costs.

Meanwhile, uSwitch.com has revealed that withdrawing cash on a credit card has high costs perhaps unknown to consumers.

Rates up to 27.06 per cent were reported.

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