The majority of those with credit card debts would be shocked at how lenders pay off the amount owed, new research has revealed.
Findings from a study conducted by Nationwide indicated that 56 per cent of people would be angry if they discovered the cheapest debts were being paid off first, although 63 per cent are unaware of how repayments are allocated.
Product and marketing director with Nationwide Chris Rhodes noted that this lack of understanding is to the detriment of the public, who continue to incur penalties because of it.
“This is a fairness issue and a positive order of payments is now the fairest way forward for consumers,” he said.
Mr Rhodes’ opinion is supported by UK credit card-holding adults, 67 per cent of whom believe the government should intervene on this matter.
His comments come after Simon Moon of This is Money recently noted that clearing credit card debt can take years if just the minimum monthly amount is met.
By Sarah Adie