I’m a mum-of-two in £20,000 of credit card debt after spending on clothes, drinks and takeaways – but I’m not ashamed

By James Flanders, Consumer Reporter

UK Finance reports that we spend a whopping £2 billion a month using our credit cards.

While that little strip of plastic makes everyday spending easy peasy, it comes at a huge cost.

According to The Money Charity, the average credit card debt sits at £2,485 per household or £1,312 per adult.

And if you're stuck on a credit card with a high APR and only making the minimum repayments, you could be forking out hundreds of pounds extra in interest charges.

For example, if you owe £1,312 on your credit card and are charged 24.8% APR.

If you don't make any more transactions and pay £100 a month in repayments, you will pay off the card by September 2025 but at £207 in interest.

However, by hunting around for a better deal elsewhere and switching to a balance transfer credit card with a lengthy interest-free period, you can save yourself £162.

If the same person was accepted for a 28-month-long zero-interest credit card with a 3.4% balance transfer fee and made the same £100 repayments each month.

They would pay off the debt sooner, in July 2025, and only fork out £45 towards the 3.4% balance transfer fee.

Before taking out a new credit card or increasing the amount you borrow, it's vital to consider the consequences.

You should only borrow money if you can afford to pay it back.

It's always vital to ask yourself if you need to borrow before committing to a new credit card, personal loan or overdraft.

If you use a credit card, I'd recommend that you always pay off your balance in full at the end of each statement period.

Lenders have a responsibility to help customers who are in debt.

If you're in a debt crisis, your first point of call should be your lender.

They might help you out by offering you a reduced interest rate or a temporary payment holiday - so check in with your lender if you're struggling.