Credit card customers ‘need to be aware of risks’

The potential consequences of only paying off the minimum amount of credit card debt each month should be made clearer to customers.

That is the suggestion of moneysupermarket.com, which called for greater information to be provided to those in debt.

Rather than support a mandatory increase in the minimum, which the site suggested could create further difficulties, it proposed recommended levels to help consumers keep on top of money matters.

Managing director Tobias Van Der Meer explained that credit cards can be an important way to spread the costs of purchases, with only a third of holders using them to actually borrow money.

“Even so, it is vital that consumers are empowered and educated to use this form of credit responsibly and to manage their finances efficiently,” he said.

A recent Post Office report revealed that 12 million adults in the UK now use credit cards for everyday items such as groceries.

By Andy Mackay