New research claims that a monthly shop could take up to 24 years to pay back if customers make just the minimum payment on their credit cards.
The research, from uSwitch.com, revealed that spending £340 on a credit card and paying back only the minimum monthly requirement could mean consumers pay back as much as £1,500 over more than 24 years.
The website also asserts that cardholders paying a two per cent rather than a five per cent minimum repayment on the £340 bill could pay more than 550 per cent more in interest.
"Consumers who give little thought to their monthly spend and just stick it on their plastic could pay the price if they're only repaying the minimum or part of their balance each month and if they have not chosen a cost effective credit card," said Nick White, head of personal finance at uSwitch.com.
"Consumers who think that they are getting a good deal on their APR may want to take a closer look at their monthly repayments. Although a credit card's typical APR is extremely important it could be the case that by having a lower APR, customers who only pay the minimum are paying more in the long run due to lower monthly repayments."
The website advises choosing a card with a high minimum monthly repayment as this will ensure that those only making the minimum payment pay their debts off more quickly and with less accrued interest.Click here to find the best credit card deal for you.
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