For the millions of Britons aiming to find a debt solution in the UK maintaining a repayment rate in line with the minimum demands is likely to lead to serious debt management problems, Mr Lewis suggests.
Indeed, the MoneySavingsExpert,com spokesperson insists that minimum repayment plans are actually designed to keep consumers in a state of perpetual indebtedness.
“At 17.9 per cent, a £3,000 debt on a high street credit card will take you 40 years to clear, with a total interest cost of £6,200… that’s a massive amount,” he told the BBC.
“In the first month, if you are paying a two per cent minimum repayment, that’s £60. Minimum repayments decrease every month, which means you pay less and less of the debt off,” he added.
Credit Action figures show the UK’s personal debt management burden increases by around £1 million every four minutes.