Cash point

Daily Mirror - - FINANCE - WITH TRI­CIA PHILLIPS

A Labour Party plan to en­sure no one pays more in in­ter­est than what they bor­rowed on a credit card is just what is needed to help those in the red.

Peo­ple strug­gling with card debt are be­ing ham­mered with huge in­ter­est costs each year.

Re­search found those who only make the min­i­mum re­pay­ment each month pay an av­er­age an­nual in­ter­est of £1,428.

And the num­ber of peo­ple re­pay­ing the min­i­mum is huge – a poll by voucher­code­spro.co.uk found it was just over half of peo­ple con­tacted.

Eight out of 10 of them said they were paying the min­i­mum be­cause they could not af­ford to pay more.

The av­er­age amount peo­ple owe on credit cards is £6,890, and the av­er­age an­nual in­ter­est is 16.9%.

Min­i­mum re­pay­ments on credit cards cover the monthly in­ter­est and usu­ally just a few pounds of the ac­tual debt – so it can take years to fi­nally clear the bal­ance.

Push­ing to pay just £5 or £10 above the min­i­mum will help chip away at the debt much faster.

Set up a standing or­der for the max­i­mum you can af­ford and make clear­ing your debts a pri­or­ity.

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