Avoid making just the minimum repayments on credit cards

You are playing into the card issuer’s hands, effectively borrowing money at a high interest rate.

It is better to repay the minimum than nothing at all, but in reality you are treading water and playing into the card issuer’s hands.

Card companies have been forced to put warnings against paying just the minimum balance on their statements and with good reason.

It would take 15 years to pay off the £3,000 balance on a 14.9% APR card if only the minimum payment of £90 was made.

You would nearly halve that time if you paid an additional £60 a month.

For many people with various debt problems, usually their credit cards carry the highest APR for all their debts, therefore it make sense to target paying back credit cards rather than lower interest overdraftsa and bank loans.

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