Martin Lewis Issues URGENT £9,000 Warning – What Every Credit Card Holder Needs to Know NOW
Martin Lewis, the renowned BBC Sounds podcast host and consumer finance expert, has issued a stark warning to credit card holders, even those who never miss a repayment. With the ongoing Cost of Living crisis, Lewis cautioned that using minimum repayments on credit cards could result in a shocking £9,000 debt accumulation over time.
In a post shared with his followers, Lewis explained the dangers of sticking to just the minimum repayment on credit cards, writing: “Danger minimum repayments on credit cards, reported by Birmingham Live. They are evil geniuses. They’re designed to keep you in debt for decades, as you repay a percent of what you owe, so payments reduce with the debt. On a £5,000 debt, making a typical minimum repayment you’ll keep paying for 35 years at an interest cost of £9,000.”
Lewis also offered an alternative: “Yet if you fixed your repayment at £200, the amount of the min repayment in month one, you’d see that debt gone within three years, and just £1,600 interest.” His message serves as a powerful reminder of how small repayments can allow debt to accumulate and become a much larger financial burden over time, as reported by the Mirror.
The response from his followers has been overwhelming. One fan suggested, “0% and if you have more than one, I personally chase down the smaller balances providing I pay the minimum on the others and the offer length allows me to.” Another person weighed in, saying, “There should be a change to the Consumer Credit Act to make the minimum payment to be the monthly interest + 1% of the Credit Limit or Outstanding Balance (whichever is the highest).”
Several followers also shared their personal stories, with one recalling: “I spent probably over 20 years paying off credit card debt. I remember when one of them wrote to me to tell me they were increasing the minimum payment by some ridiculous amount & I suddenly realized that I had enough money to pay it all off, I was very happy that day.”
Others advocated for broader financial education, with one person stating: “The answer is Financial Education, something sorely missing from the British curriculum and genetic make-up. I started my career in Banking but soon got out when I figured it was all about Corporate Profit, not financial responsibilities.”
Lewis’s warning highlights the importance of understanding credit card debt and the long-term impact of minimum payments, encouraging consumers to take control of their finances and seek better repayment strategies.