Credit cards offer simplicity, security and, most importantly, a chance to pay for your purchases at a later date. Yet the trouble is, many consumers don’t understand the true, long-term cost of splashing out with the plastic.
For instance, can you answer the following question? If you had a credit card balance of £1500 and a typical interest rate of 17.9%, and you only ever made the monthly minimum payment, how long do you think it would take you to pay it all off?
The answer, according to moneysavingexpert.com, is 21 years. Yet if you are shocked by this figure then you are certainly not alone. However, it is exactly this lack of awareness that lands many people in perpetual debt.
Of course, some people think that they can escape the trap of high-interest rates with the strategy of ‘card surfing’, which basically means transferring balances on a regular basis to get the best introductory offers. What they don’t realise is that this can actually have a negative impact on their credit score, causing loan providers to categorise them as ‘lacking in loyalty’. Yet if consumers do stay loyal to one provider, they can often find themselves whacked in the wallet with massive interest rates after the tempting introductory offer has ended. So what should they do?
This is where AppToPay comes in. It offers a smart and sane alternative to high-interest credit cards, helping you to avoid their financial pitfalls while still enjoying many of their benefits.
AppToPay is an app-based split payment system that offers you flexible lines of interest-free credit.
You can use AppToPay to spread the cost of purchases made in your favourite SME and independent retailers in the UK between 2 & 12 months in just a few clicks. With AppToPay, you will get the spend ease of a credit card with the structured repayments of a loan, with interest-free payments taking place over a period of two to 12 months.
In short, AppToPay is a smart alternative to high-interest debt that could end up transforming our relationship with credit. Viva la shopping revolution.
AppToPay has recently launched in the UK. If you would like to learn more about how it works, take a look at the AppToPay website here.