Money-saving guru Martin Lewis has issued an urgent warning to UK credit card users about a financial pitfall that could lead to devastating debt.
The Costly Mistake You Might Be Making
Lewis, founder of MoneySavingExpert.com, highlighted how simply paying the minimum repayment on credit cards could trap consumers in a cycle of debt that might take decades to clear.
Why Minimum Payments Are Dangerous
"Paying just the minimum is one of the worst things you can do with credit card debt," Lewis explained. "While it might seem manageable in the short term, the interest compounds dramatically over time."
For example, a £3,000 debt on a typical 18.9% APR card would take:
- 26 years to clear with minimum payments
- Cost over £4,200 in interest alone
- Result in paying 140% more than the original debt
Smart Alternatives to Avoid Debt Traps
Lewis recommends several strategies to tackle credit card debt effectively:
- Pay more than the minimum - Even small increases can dramatically reduce repayment time
- Consider balance transfers - 0% deals can provide breathing space to clear debt
- Prioritise high-interest debts first - The 'avalanche method' saves the most money
When to Seek Professional Help
For those already struggling, Lewis advises contacting free debt charities like StepChange or Citizens Advice. "There's no shame in seeking help," he stressed. "Early intervention prevents problems snowballing."
