New summary box 'could reduce credit card debt'

Financial watchdogs are hopeful that changes to the way in which credit cards are marketed could reduce the number of consumers falling into debt.

By the end of June, all credit card companies will be required to market their offers using the revised summary box, which provides product information in a standardised format.

According to Apacs, this change should improve transparency in the credit card industry and help customers to shop around for the best deals.

It could also further encourage competition within the credit card industry and result in more affordable interest rates for consumers.

"The summary box was revised after research undertaken by the credit card industry revealed that information formatted in tabular, bullet point or numbered list made it simpler for consumers to compare the products," explained Michelle Whiteman, corporate communications officer at payments association Apacs.

Consumer Credit Counselling Service (CCCS) recently warned that using a credit card for "unnecessary purchases" can often lead to serious debt problems.