Credit card debt 'could last 31 years'

People who only pay the minimum amount off their credit cards each month are costing themselves thousands of pounds in interest each year, a new study has revealed.

According to uSwitch.com, the average balance of £1,384 may not be paid off until 2039 if people only pay two per cent of the balance each time.

This amounts to £9.6 billion of interest for the nation as a whole, or £2,829 each a year.

To put things into perspective, the organisation cites the example of a £739 holiday to Beijing purchased on a credit card.

By only paying off the minimum, the holiday would take 22 years and three months to pay for and interest would cost £1,324 - almost double the cost of the trip in the first place.

Simeon Linstead, head of personal finance at uSwitch.com, said there has been an increase in credit card spending recently, making the problem of minimum repayment even worse.

"With the cost of living on the up, consumers will be more tempted to just make the minimum repayment on their credit cards and spend the cash on more pressing bills.

"However, as our research has revealed, those that opt to manage their credit card debt in this way could end up paying far more than they need to for every purchase made," he remarked.

Last month, Darren Cook, head of public relations for financial advisor Moneyfacts, said that Consumers are struggling with their expenses because the sudden downturn of the economy caught them off guard after a long period of stability.