Your relationship with your credit card could last three times as long as your marriage does. Comparison website Finder has discovered that relationships with credit cards last three times as long as the average marriage of 12.3 years.
Finder found that 45% of Australians are ‘yoyo debtors’. This means they borrow as much on their credit card each month as they manage to pay off.
By only paying off the minimum amount each month, Australians are tying themselves into interest rates and long-term repayments. In the last year Australians repaid only half of the nations $49.6 billion of credit card debt.
Finder spokeswoman Michelle Hutchison said that the average Australian will keep a credit card for around four decades, which is far longer than most marriages last. This debt is usually around $3280 and it costs the holder around $550 a year in interest.
By making only the minimum payments on your card you are effectively tying yourself into a 42-year marriage with your creditor.
