Use your credit card wisely and save thousands

Michelle Slade, analyst at Moneyfacts.co.uk comments: "With families' disposable income greatly reduced, many will be reaching for their credit cards to buy some luxuries over the summer. Whether it's a family holiday or days out, the 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.

"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 card without such a deal.

"Just by repaying a small percentage, more customers can save thousands.