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Minority of people pay off minimum balance on credit cards

Just seven per cent of credit card holders knock off the minimum amount from their credit card bills a new survey reveals.

The report by Fairinvestment.co.uk, also shows that 13 per cent of people ignore their credit statements but 60 per cent pay their balances in full.

Customers clearing their debt on a monthly basis benefit from doing so. Fairinvestment.co.uk report that advantages from this include no interest charges, cashback and airmiles.

James Caldwell, director of the company, said: "It is uplifting to see that more than half of credit card customers can still afford to clear their balance each month and are not relying on their credit card for day-to-day essentials, getting further and further into debt."

The survey showed that moving balances from one credit provider to another was a technique used by seven per cent of people to keep their interest rates low.

Consolidating debts is another popular way to manage finances with 6.5 million people choosing this option since 2005.

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