Consumer advice: Minimum payments cost more in long term

Families needing consumer advice have been warned that only paying off the minimum when it comes to debt will cost more in the long term.

A spokesperson for the Consumer Credit Counselling Service has explained that one way of battling against debt is to keep a record of credit card transactions which then avoids the shock when the monthly bill arrives.

"Really the danger is if you just end up paying the minimum each much it’s going to cost you a lot more in the long run," she said.

"If they charge you a little [interest] it will become much worse and it can take years to pay off."

While the expert maintained that credit cards can be "handy" particularly when taking advantage of a good deal, she also stressed that before applying for one, it is essential to review existing levels of debt to ensure that payments will be able to be made in full each month.

Her comments came as research by Which? Money found that hidden card charges can increase payment by up to 200 per cent.

Source: candis.co.uk