Credit card defaults cost £300 on average
The average credit card holder forks out £300 for missing a single monthly repayment, according to moneysupermarket.com.
It found that about two-thirds of cards offering a 0% introductory rate will automatically move to a higher rate if a repayment is missed.
The comparison website says many people are unaware of these severe penalties.
Rob Kenley, head of credit cards at Moneysupermarket.com, advises cardholders to set up a direct debit to ensure that they do not miss a monthly repayment and incur extra interest costs.
“To avoid missing any payment it is vital people set up a direct debit to repay the minimum sum required each month against their balance,” he said.
“They should also make additional payments whenever possible.”