Cash point

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.