UK consumers struggling with credit card debt aren't being given a fair chance to eliminate their arrears according to Nationwide.
Nearly all credit card providers take the repayments consumers make and pay off the cheapest debts first, meaning that the interest consumers pay remains high, adding the maximum amount to their debt each month.
From October, credit card companies must highlight in their bills where a consumers repayments are being allocated to, so they're able to see where they stand regarding the interest they pay.
Divisional director at Nationwide, Jeremy Wood commented, "Most providers apply payments to the cheapest debt first making it more expensive for the consumer and more profitable for them."