The UK’s foremost peer-to-peer platform has created a “Moneyfesto” – highlighting the major changes it would like to see credit card companies undertake.
The Moneyfesto comes as part of Zopa’s BacktoBlack campaign on 0% balance transfer traps and credit card debt. The BacktoBlack report, compiled by personal finance expert Mike Naylor, sheds light on the pitfalls, ongoing debts and unexpected costs of credit card usage. While Zopa acknowledges that credit cards can serve a useful purpose, the platform believes that for the most part people end up caught in a vicious debt cycle. Zopa wants credit card consumers to be given a fighting chance – calling for low interest rates and the ability to pay off early at no extra charge. Below are some of the findings from the BacktoBlack report.
Zopa’s Moneyfesto, which can be viewed below, suggests steps the credit card providers might take if they are to combat the problems highlighted by the BacktoBlack report.
Giles Andrews, CEO of Zopa, offered his thoughts on the issue:
“It’s clear that consumers who have credit card debts will struggle to become debt free and end up carrying sizable debt for a number of years. Credit card companies know full well that around half of customers may not pay off the full amount and are betting against you to fail from the start.”
“Consumers need to stop thinking of “loans” as a dirty word. Loans and credit cards are both forms of debt, but loans can be much cheaper than credit cards, especially for millions people that struggle to pay off their credit cards. Zopa has helped thousands of borrowers become debt free by providing low cost loans from as little as 4.4% Rep APR. We think consumers deserve an affordable monthly payment plan and an option to pay off early at no extra cost in order to get back-to-black.”