'Pay more than the minimum' on credit card bills - 10/01/2008

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People who built up debt on their credit cards over Christmas should pay back more than the minimum monthly amount to get a handle on their personal finances in the new year, the Consumer Credit Counselling Service (CCCS) has advised.

According to Frances Walker of the registered charity, with fluctuating interest rates and utility bills on the rise this winter, this time of year is particularly good for people to get their personal finances in order.

And as both the lead-up to Christmas and the January sales can cause people to spend more than they intended, the new year is a good time to address any outstanding debts, she added.

"If people have used a lot of credit cards over Christmas they really need to be paying back more than just the minimum payments," she explained.

Ms Walker said that it is important to consider the long-term impact of only paying back the minimum amount on a credit card bill.

"If you just pay back the minimum amount - say you spent £500 - you will probably find you still owe about £460 next year, even though you will have paid out over £100," she said.

According to Credit Action, total personal debt in the UK is currently £1,400 billion.

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