Tackle credit card debt first, consumers told

Those with credit card debt should tackle high interest products first in order to reduce their arrears as quickly as possible, according to one financial expert.

Speaking to the Telegraph, Darren Cook, a spokesman for Moneyfacts, said that people looking to get their finances under control in the new year should focus on store and credit card debt first.

He told the newspaper: "If you do have existing outstanding debts, it is always advisable to try to pay off the most expensive forms of credit first."

Mr Cook went on to say that credit cards can cost consumers as much as 30 per cent in interest every year, while savings accounts are currently only earning an annual percentage rate of 0.81 per cent.

Meanwhile, the consumer body Which? has recently suggested that people should consider shopping around if they are looking for good credit card deals in 2010.

Posted by Gemma Walker.