Are you one of those who will see a cut in the minimum repayment on your credit card? Times Online reports that Barclaycard, the largest issuer of credit cards, said the changes will take effect from next month. Some 12 million people will enjoy the level falling from 2.25% to 1.5%. Beware though: the bank’s act of ‘generosity’ will actually make you pay back more in the long run.

The announcement follows figures showing that £2.7 billion of new debt has been shouldered by the UK economy in just the first quarter of this year. Savings, on the other hand, have hit an all-time low of £14 billion according to Unbiased.co.uk. This equates to 19p borrowed for every £1 saved. So more doom and gloom is being spelled out by industry analysts. Meanwhile, debt counselling services have reported record numbers of people seeking advice after being made redundant.

You would think that the cutting of minimum repayment levels is seen as a generous act by credit card companies. However, Martin Lewis from moneysavingexpert states that their existence at all is actually based on ‘keeping customers perpetually in debt’. By paying less back there is a greater amount still owed to the company, therefore the rates charged will increase the amount of interest that will need to be paid back when the loan is finally paid off.

Are you struggling to pay off credit card debts? Are you going to struggle to pay off your final instalment? Then you might consider taking out one of our payday loans at www.247Moneybox.com. If you need cash to tide you over until your next paycheque, then take a few minutes to fill out our application form, and, if approved, you will receive a cash loan that will relieve the stress of paying back bills on time.