For example, having £5,000 of credit card debt with an APR of 18.9 percent and monthly minimum repayment of £100 would take roughly seven years to pay off, amounting to almost £4,000 in interest alone.
However, paying £200 per month instead could save roughly £2,700 in the long run and cut down the repayment timeline by five years according to Ms Charalambous.
She added: “Alternatively, some may choose to prioritise smaller debts with lower interest rates that can be quickly paid off. This allows for some quick wins and helps build momentum towards clearing the more daunting, larger debts.”
Savers are often advised to shop around for the best possible interest rates on accounts that suit their needs, but Ms Charalambous suggested that the interest rate is not all that they should be looking at.
She noted: “There may be other rewards on offer for moving your money. For example, some savings accounts offer cash incentives for switching, while others offer benefits for specific savers. This includes the Lifetime ISA, which offers government contributions towards savings for a first property purchase or retirement.”