Nationwide discovered that 63 per cent of credit card holders do not know how their repayments are scheduled, though this is down from 2007's figure of 69 per cent.
This means that they do not understand whether their cheapest or more expensive debts are repaid first - and unfortunately for consumers, lenders frequently leave the dearer debt till last, enabling it to accumulate more interest.
Just 36 per cent realised that debts with the lowest interest rate are generally the first to be cleared.
Nationwide spokesperson Chris Rhodes observed: "Consumers still don't understand this issue and continue to be penalised."
Loans have also become more expensive, meaning many people will be entering 2010 with heavier debt.
According to moneysupermarket.com, personal loans became more expensive throughout 2009.
The current average rate for the top ten £5,000 loans was calculated at 10.78 per cent - 1.54 percentage points more than it was in January.
More people are seeking loans, although fewer are successful in their quest. More people, though, are seeking debt consolidation loans to help make their debts easier to manage.
This means that they do not understand whether their cheapest or more expensive debts are repaid first - and unfortunately for consumers, lenders frequently leave the dearer debt till last, enabling it to accumulate more interest.
Just 36 per cent realised that debts with the lowest interest rate are generally the first to be cleared.
Nationwide spokesperson Chris Rhodes observed: "Consumers still don't understand this issue and continue to be penalised."
Loans have also become more expensive, meaning many people will be entering 2010 with heavier debt.
According to moneysupermarket.com, personal loans became more expensive throughout 2009.
The current average rate for the top ten £5,000 loans was calculated at 10.78 per cent - 1.54 percentage points more than it was in January.
More people are seeking loans, although fewer are successful in their quest. More people, though, are seeking debt consolidation loans to help make their debts easier to manage.
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