Reduced minimum payments on credit cards could increase the need for people to seek a debt management solution, such as an individual voluntary arrangement (IVA).
The Times reported this week that some £3.5 billion is currently "stuck" on credit cards bearing interest, as consumers are not able to switch to additional zero per cent deals when their current plan expires.
Further compounding the problem, providers such as Barclaycard have reduced their minimum repayment from 2.25 per cent to 1.5 per cent for some consumers - leaving them in a state of "perpetual debt" as it will take them longer to pay back what they owe.
As the recession continues to negatively impact household finance, those who are already struggling with credit card debt could find their troubles increase in the long-term if they only make minimum payments, it claimed.
People who are experiencing debt troubles may wish to examine an IVA as an alternative to bankruptcy.
Guardian Money blogger Ivy A wrote this week that when faced with the choice, her family opted to take on an IVA because the arrangement allowed them to remain in their home.
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