The credit card industry is to make an effort to assist consumers in controlling their finances, the UK Payments Administration (UKPA) has announced.
According to a statement from the organisation, the industry is to contact credit card customers who regularly pay only the minimum required amount to inform them that this is the most expensive way to pay off the debt.
The industry is also considering proposals to reduce the cost of paying off credit card debt and to introduce exclusion measures to prevent vulnerable customers from acquiring credit limit increases.
Melanie Johnson, chair of the UK Cards Association, said: "The credit card industry is keen to give consumers as much control of their finances as possible.
"The package of changes we are proposing … is based on evidence from a number of highly-regarded independent sources. Our approach will deliver big improvements to customers without smothering competition and choice, which customers value and gain significant benefit from."
Worries over credit card debt could be eased for property owners who take out an equity release scheme.
Such policies allow homeowners to access the funds they have tied up in the value of their assets.
