Mortgage Bankers Association

Consumers are warned of a price comparison site that pays only the minimum amount on a credit card balance every month, could lead to a wider "debt sentence."

According to uSwitch, the borrowers who opt for the cheap loans on credit cards – and choose to pay only the minimum amount off each month – the risk of prolonging the time needed to repay the debt up to 30 years. The warning follows news that Barclaycard and M & S Money have abandoned their minimum paymentless than 2.5 percent.

Barclays is now asking customers for a monthly fee of 2.25 percent, down from 2.5 percent, while borrowers with M & S credit card and money can pay as little as 2.5 percent per month compared to three percent. Also, the price comparison service, shows that the negative issues of debt management to help the credit card industry a minimum threshold for repayment of three per cent to enter.

"There is little justification for setting a minimumrate of just two percent, and we believe it is high time that the industry has agreed to return a minimum of at least three percent of all credit cards ", says uSwitch personal finance expert Mike Naylor.

He added that despite the move to health warnings "on credit card to make the literature easier to understand that the majority of borrowers are still problems associated with only having to pay a minimum amount each month to understand . Mr. Naylor has suggested thatonly by paying the debt, without a credit card in small quantities, consumers could pay the mortgages and unsecured loans, before cleaning card balances.

"In an environment of rising interest rates, where the personal debt in the UK a staggering £ 1,325 billion euro, which bought the credit card debt accounts for 54 billion pounds, consumers can now repay the complete mortgage before their credit cards, despite the great difference in the amount borrowed, "he elaborated.

uSwitch.com 'sResearch has shown that 3.5 million British could pass 30 years struggling with debt, because the administration to choose only the minimum repayments to make. But pay a little 'more each month could see their "debt" borrowers by cutting 15 years of collective interest and to generate savings of 5.5 billion pounds.

The figures published today by the British Bankers Association (BBA) suggest that lenders are slowly beginning to turn to credit cards and tried for their low-cost loansfinancial needs for space. Borrowing the plastic has fallen £ 0.1 billion in June, the club has revealed, while other personal loans are popular. Loans and overdrafts and loans of £ 0.1 billion months last year, and loans secured loans grew by an underlying £ 5.1 billion.

Meanwhile, Toby Clark, senior financial analyst at Mintels, said recently that Britain is "highly underestimated" how much money you have on credit cards and personal loans. Expertspoke after an inspection of the company showed that 21 million consumers have more than 100 billion euros expected.