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Struggling with credit card bill - look for a cheap mortgage

Date: Mon, 16 Jan 2006

As the number of credit cards offering customers cash-back falls many borrowers could be looking to remortgage to cut back on unsecured debts.

Credit card providers are appearing less willing to give card holders a percentage of what they spend on the card as a tax-free bonus. The decline in other loyalty schemes such as AirMiles could mean that some homeowners will be looking around for a cheap mortgage deal to reduce their credit card balances and outstanding loan commitments.

"It is now becoming increasingly difficult for customers to find a card which offers them the kind of cash-back benefits that were common place at the beginning of 2005," said Samantha Owens, head of research at independent comparison site Moneyfacts.co.uk.

Ms Owens added that credit card companies are attempting to reduce their overall cost, especially as consumers start to feel the increase in debt spending following the festive period.

Remortgaging via a cheap mortgage deal could enable many home owners to pay off any high interest credit and store card balances and reduce their monthly outgoings.


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