Britons’ lifetime sentences of debt stand to be reduced as a result of changes to credit and store card regulations suggested by the government.
This is the opinion of price comparison website Moneysupermarket.com, which found following an analysis of the proposals that almost 14 years and £2,400 could be stripped from the amount owed by consumers.
Credit cards expert with the organisation Peter Harrison observed that the “lack of understanding” regarding the industry could mean people “end up paying a huge amount of interest”, lengthening their sentences “for years – decades in some cases”.
However, he advised debtors not to wait for the reforms to come into effect, if they are “trapped by payment hierarchy”.
Under the new government code, increases will be seen in the minimum monthly repayment levels, which may encourage borrowers to pay off their arrears in less time, as part of a system intending to better protect consumers.
By Sarah Adie