Ok, you may not be in a ‘debt crisis’, but the only ones winning from your minimum payment are the credit card companies.
It’s so easily done.
You get a credit card and make a purchase or two. And then, rather than paying it off at the end of the month (like you promised yourself you would), you make the minimum payment.
And then you do it the next month.
And the one after that.
And the whole time, your hard-earned cash is coming out, but the amount you owe the credit card company keeps going up.
Ok, you may not be in a ‘debt crisis’, but who wins? Probably not you. The truth is, the credit card treadmill can happen to any of us. We want to help our members get off it, so they can keep more of what they earn.
About one third of all loans we do are for debt consolidation. The way it works is simple: borrow from us the money you need to pay off your cards for good, and then repay us, straight from your salary. There’s a clear end date, and the amount of interest you end up paying will usually be far less than you’re paying now.
Get off the treadmill
Find out how much you could borrow to consolidate your existing loans with our handy calculator, then apply online:
At London Mutual, we believe that responsible borrowing can be an important tool, enabling us to do things that wouldn’t otherwise be possible. But like any tool, it needs to be handled with care.
We’re all about helping our members get into financial shape. That starts with helping people to get off the expensive debt treadmill so they can live without money worries.
Good to know
The content of this post is provided for information and guidance only. It does not represent financial advice, nor should it be construed as such.