Skip to main content

Closing the perception gap

As part of our ongoing efforts to understand consumer needs and make the world of credit a fairer place, we conducted a survey that found only one per cent of the population knew how long it would take to pay off £2,000 in credit card debt by making the minimum repayments each month. In order to visualise this for people we created the Minimum Repayment Trap calculator, which not only offers users a chance to guess at how long it would take to pay off the debt, but also gives the massive amount of repayment time (nearly 35 years) some scale by utilising a large scrolling graphic.

Are you in the 1%?
Are you in the 1%?

  By highlighting the fact that only one per cent of the population was aware of how long it would take to repay this amount, we hoped to show how many people could potentially save money if they were more aware of how credit card repayment works. Obviously paying off a smaller amount of money each month is a far more attractive prospect, however this can lead to consumers falling into this 'minimum repayment trap' meaning they end up paying far more than they need too.

Avoid the trap

Lenders make it easy for consumers to sign up for a minimum repayment programme, however, as our content piece shows, it would be far more beneficial for consumers to pay off a fixed amount on their credit card each month. When we conducted this research we found that 11 percent of credit card holders made the minimum repayment on their credit card the previous month, however this number increased to 13 percent of card holders following the Christmas period. These same card holders told us that they put an additional £100-£500 on their card during the festive period. This additional spending could end up costing them more than £800 in interest, so we hope that we have found a compelling way to show the cost of falling into the minimum repayment trap.

TotallyMoney Logo

We're on a mission to improve the UK's credit score and help people move on up to a better future.


TotallyMoney is an independent credit broker, not a lender. Our comparison service works with most leading lenders, covering the majority of the market. Though we may be paid a fee by lenders or brokers this never influences how our products are ranked.

We don't provide financial advice. Product information is obtained from independent sources and rates displayed may vary depending on your personal circumstances. While we make every effort to ensure that information is up to date, you should always confirm the terms of the offer with the product provider.

TotallyMoney is owned and operated by TotallyMoney Limited which is registered in England and Wales (Company Registration Number 06205695). TotallyMoney Limited is an Appointed Representative of TM Connect Limited, which is registered in England and Wales (Company Registration Number 06967012) and authorised and regulated by the Financial Conduct Authority in respect of consumer credit related activities (FCA FRN: 511936). Trading Address and Registered Office: Chapter House, 16 Brunswick Place, London N1 6DZ. Credit is available, subject to status, only to UK residents aged 18 or over.

We use cookies as described in our Cookie Policy. Continue browsing or click to accept.