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Use your credit card wisely

Many families will be reaching for their credit cards to buy some luxuries over the summer as disposable incomes have been reduced. Whether it's a family holiday or days out, the credit card costs can soon mount up.

If only the minimum repayment is paid each month, many could find themselves paying more than twice as much for their purchases.

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If you spent £3,000 on a credit card charging 15.9% APR and repaid the minimum of 2.5%, min £3, you would end up paying an additional £2,729.16 in interest and it would take you 25 years and 2 months to repay the debt.

The Halifax All in One MasterCard offers 0% on purchases for 10 months. Many shoppers would be tempted by such a deal. However, if they just repay the minimum, they will end up being worse off than if they had used a credit card without such a deal.

Just by repaying a small percentage, more customers can save thousands. Paying just the minimum is very tempting, especially at times like these when many families are struggling, but by doing so you will be storing up additional debt for the future.