Sunday Mirror - - FRONT PAGE -

These are com­mer­cial ge­nius. As they only just cover in­ter­est, you hardly ever pay any­thing off, leav­ing you near per­pet­u­ally in debt, ac­cru­ing more in­ter­est for years.

Bor­row £3,000 at a typ­i­cal 17.9% and make min­i­mum re­pay­ments and it can take 27 years to clear at an in­ter­est cost of £4,000. Use the min­i­mum re­pay­ment cal­cu­la­tor at mse. me/min­re­pay to see how long yours will take.

Yet there’s a trick here too. Min­i­mum re­pay­ment in month one is £70, so if you fix your re­pay­ments at this ev­ery month (rather than min­i­mum re­pay­ments which re­duce as you owe less)

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