Credit cards One of the key issues under review is the order in which debts are paid off. According to a survey conducted by moneysupermarket.com, almost two-thirds of credit card users don't understand that their cheapest debt is paid off first, an oversight which could be costing them hundreds of pounds.
Clare Francis, website editor at moneysupermarket.com, said: "Our research shows that the current repayments hierarchy system is widely misunderstood by consumers and many end up paying more than they should in interest as a result. This goes to show the importance of reading and understanding the terms and conditions before using a credit card, so that consumers aren't caught out."
The survey also revealed that once customers were made aware of the so-called "negative payment hierarchy" - where the cheapest debt is paid off first - they felt cheated (37 per cent), angry (29 per cent), confused (17 per cent) or worried (seven per cent). Only nine per cent say they were not bothered by this system.
Further analysis showed that if consumers incorrectly used a card with a negative payment hierarchy they would pay almost twice as much in interest on a £3,500 debt, compared with a card with a "positive payment hierarchy".
Only two providers in the UK, of which Saga is one, operate a positive payment hierarchy, where the most expensive debt is paid off first. Roger Ramsden, chief executive of Saga Personal Finance, explained: "It comes as no surprise to us that people feel cheated and angry by credit card providers who make it more difficult for their customers trying to pay off their credit card debt.
"If credit card providers won't put their own house in order, then we urge the Government to outlaw this sharp practice."