Cahoot has said that its two per cent credit card repayment charge is "fairly standard within the industry".
Joe Wiggins, a spokesperson for Cahoot , made the comments following research from comparison website uSwitch which shows that people who owe around £3,000 on their credit cards could make savings worth £2,000 by repaying an extra per cent of their balance each month.
However, Cahoot states that a two per cent repayment offers credit card holders increased flexibility and "retains the right balance of prudence".
"Most people are well aware that only paying the minimum will mean that it will take them longer to pay off their debt and we believe that it is important to give the customer the choice of how they want to manage their money ," the spokesperson added.
uSwitch also announced yesterday that credit card debt has increased by seven per cent in the last two years.
Nick White, head of personal finance at uSwitch, said: "Currently 74.9 per cent of [credit card] balances are interesting-bearing balances meaning that it is likely that minimum repayments affect most people at some point."




