Martin Lewis offers credit account advice – ‘Get debt free quicker’

Martin Lewis, well-known for helping out consumers across the country with their queries, today appeared on ITV’s This Morning to answer the latest questions posed by Britons. The financial journalist zeroed in on a question which is likely to affect many people, and offered his money saving advice. On his segment, Martin responded to a woman named Shauna who had a personal financial query.

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She was curious as to what was the best approach to take with her multiple credit accounts.

The saver, who had just under £2,000, asked Martin if it was sensible for her to keep juggling several accounts.

Her other option was to consolidate all of these accounts into one place for easier access and understanding. 

Martin, who frequently offers advice on the best credit options, was happy to help.

He said: “I would always like you to have the cards where they are cheapest.

“If it takes different accounts to keep them all at zero percent interest by doing balance transfers, keep them on different accounts.

“The only negative is that because you have to meet repayment for each card, that may be higher with a combination of cards rather than with a single card.

“It depends whether your priority is to reduce the interest or reduce the amount you have to shell out each month.

“I would tend to always prefer reducing the interest, because that costs you the least and gets you debt free quicker.”

However, Martin did acknowledge that due to the current circumstances, the saver may prefer to go for one payment as it could be lower rather than the interest being cheaper.

He concluded: “If you can get them all at zero percent interest as they are all on one card – winner winner chicken dinner.”

The consumer website Experian has also offered opinions on credit accounts.

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It states there is no ‘one size fits all’ approach when deciding how many credit cards and accounts to keep.

This depends on a number of personal circumstances which can affect how many credit cards, if any, spenders and savers should keep.

These include financial responsibility, willingness to pay annual fees, desire for rewards, and spending habits. 

Having multiple credit accounts will not necessarily affect the credit score of Britons.

This is the case as long as credit card balances are kept low, and payments are made on time. 

The Money Advice Service has stated the best way to pay off credit card debt is to move it to a zero percent transfer credit card, as Martin posed. 

This deal will offer a period of time where no interest is charged on the debt, helping Britons to focus on repayment. 

Martin Lewis is the Founder and Chair of MoneySavingExpert.com. To join the 13 million people who get his free Money Tips weekly email, go to www.moneysavingexpert.com/latesttip.

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