“Whilst we fully support any initiative to help consumers reduce their debt and pay less interest, complex changes to terms and conditions can cause unnecessary confusion. On closer inspection, it doesn’t seem that all customers will benefit from this change and some people would be better off under the 2% minimum repayment ruling. These latest changes from HBOS are really designed to help people carrying out transactions which carry higher interest rates. Unfortunately, due to the complexity of the changes being made, it is very difficult for consumers to understand if they will benefit or not,” said Simeon Linstead.

He continues to say that, “In the current climate we strongly advise people to carefully read all correspondence from their credit card provider as it seems a new glut of ‘tweaks’ to terms and conditions are currently being implemented by providers. Generally speaking, making the minimum repayment may seem like a good idea at the time but it will barely touch the balance and could lead to a very long debt sentence.”