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Always pay back 'more than the minimum' on your credit card

Debt can last years if credit card users are only paying the minimum, warns expert

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18 October 2011

Always pay back 'more than the minimum' on your credit card”

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UK consumers should always aim to pay back more than the minimum amount owed on their credit card, according to a financial expert.

Annie Shaw, editor and director of personal finance advice website cashquestions.com, underlined the importance of continually meeting payment dates to avoid charges and also urged credit card users to pay off as much as possible.

"You should always attempt to pay more than the minimum each month, because that then starts to eat into the capital that you owe, and means that the next month your minimum would then be slightly less," she said.

"If you are only paying the minimum, it can go on for years and years."

Ms Shaw added that Brits should always try to keep paying back at the "original rate". This means that if the minimum repayment is £20 one month then credit card users should continue to pay off this amount every month to clear the debt at a faster rate.

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