Thursday 13th December 2007
Credit card comparison could be aided by providing clients with an example of their likely monthly repayments, an expert suggests.
James Falla, director of debt counselling service Thomas Charles, contends that the practice would be in line with that offered by other lenders.
He observes that many unsecured loan providers illustrate the full repayment schedule before entering into an agreement with customers.
"Basically, I think the card providers should spend more time illustrating the amount that people are going to pay back," he proposes.
"Theyre not obliged to at this point, otherwise they would be doing it," he adds.
A key item of information which could be provided would be a calculation of how much would be repaid overall if cardholders made only the minimum monthly repayment.
But Mr Falla points out that this could highlight where people could be facing ten years of payments totalling twice as much as they originally borrowed.
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