Why the debts pile up

Customers can make repayments of as little as 1 per cent of the balance plus monthly interest – or £5, whichever is higher.

A customer who borrows £3,000 on a credit card at 19 per cent interest and makes minimum repayments would take 27 years and seven months to pay off the debt.

They would repay £7,192, including £4,192 of interest.

But if they repaid £74 a month it would take five years and two months. The interest would be £1,576.

And if they set their monthly repayment at £108 a month, they would pay off their balance in three years. The interest charged would be £879.