Last modified on Sun 20 Dec 2020 13.42 EST
Barclaycard is increasing minimum credit card payments for millions of customers in January that could almost double some bills, raising fears that struggling borrowers will come under extra pressure after Christmas, when they face the worst month for household finances.
Debt campaigners say the changes – which are being rolled out to Barclaycard’s 8 million customers next month – should be introduced gradually over time to avoid bigger bills right after the costly Christmas period.
“I agree with the general aim of increasing minimums so people can clear debt faster,” Sara Williams, the author of the Debt Camel blog, said. “But I think Barclaycard should have introduced these large increases in stages over a year, not all at once. That is going to be a big shock to many people in January.”