Expert issues credit card debt warning

Ms Walker suggests that by consistently failing to credit card debt outstanding on their store or credit cards consumers are running the risk of running up serious amounts of debt and potentially facing financial ruin.

“Just to pay the minimum amount, which is typically only about two per cent, is really a mug’s game. That’s the main thing that leads people into debt,” she said.

However, Ms Walker notes that progress is being made in terms of credit product transparency as a result of the Consumer Credit Act, which was introduced last year.

Last month, the Office of Fair Trading revealed that it had refused the application for a consumer credit licence from 12 organisations and revoked the licences of another six.