UK consumers are often unaware of how long it will take them to pay off their credit card debts, a new study has argued.

The report claims that Britons are “in denial” about their level of debt, and have unrealistic expectations about the number of years it will take them to become debt free.

The research, from peer-to-peer lender Zopa, found that the average consumer had £4,500 worth of credit card debt which could take up to 17 years to pay off – although many were not aware of their ‘debt age’.

The firm’s analysis showed that 66 per cent of credit card holders were paying interest on their balance each month, with 20 per cent choosing to pay only the minimum amount stated on their bill.

By taking this approach it would take up to 17 years for someone to pay off the average debt of £4,500, with the borrower paying back more than double the original debt, the report said.

However, the research found that the average expectation of paying off a credit card balance was just 3 years and 11 months, and less than 3 per cent of borrowers expected to be paying off their credit card for more than 16 years.

Of course, the actual duration would also depend on the rate of interest being charged – but worryingly, 55 per cent of the card holders surveyed did not know the interest rate on their account.

Nearly two thirds of respondents felt that their credit card debt was unmanageable, and one in five lost sleep over keeping up repayments.

Giles Andrews, CEO and co-founder of Zopa, commented: “Everyone should be aware of their debt age, and understand more about how long it will take to pay off credit card bills or loans under their current situation.

“By paying just the minimum interest on their credit cards, Britons are becoming part of a debt age crisis. Consumers could end up still paying off existing their credit cards even when they are collecting their pensions.”

The latest figures from the BBA showed that the volume of credit card transactions made this May was up 6 per cent year-on-year.

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