Have you noticed that many banks are encouraging their credit card holders to pay low monthly repayments?

Unsuspecting credit card holders pay up to three times extra in interest on some cards and it can take sixteen years more to repay a debt just by using one of the more expensive cards.

All cards require you to pay a minimum monthly payment that is supposed to pay that month’s interest and a little more besides. However, some card operators have such high interest rates and such low minimum repayments, that clients can be left chasing their credit tales for decades.

For example, clients paying the minimum with Egg or Lloyds TSB would take twenty one years to fully repay their debt whereas with MBNA it takes four years and eight months. Some difference!