The Financial Conduct Authority (FCA) has revealed that its crackdown on credit card fees has saved Britons £80m.

The authority’s work on unaffordable debt highlighted that those struggling with credit card debt were facing multiple charges for missed or late payments that increased the severity of the problem, including a number of different penalty charges on the same bill.

The FCA partnered with firms to identify a solution, with many of them either removing or capping certain fees, while improved communication has, in some instances, allowed individuals to avoid additional charges altogether.

Commenting, Hargreaves Lansdown personal finance analyst Sarah Coles: “In December we spent £18.16 billion on credit cards, and for most people the thought of living without one is tantamount to living without a mobile phone - or running water. But there’s a big difference between manageable credit card borrowing that’s paid off each month (or in a planned way over a specified number of months), and credit card debt that has got out of hand.

“The cutting of punitive fees is a good start, but if you’re struggling with credit cards, this is far from your only problem. If you’re just paying off the minimum on your credit cards each month – or missing payments entirely - you’ll be spending a small fortune in interest too: plus there’s a real risk you’re running into serious financial difficulty.

“The solution starts with working out exactly where you stand. In some cases, you’ll be able to switch your debts to another card or a loan charging a lower interest rate. At the same time you should draw up a monthly budget of everything you earn and spend, and look at where you can cut costs in order to free up enough money to pay off your debts.

“In other cases, things will have gone beyond this stage. But if you find yourself in trouble, don’t panic. You can contact a debt charity like StepChange or National Debtline, and they will talk you though your options and help you get back on track.”

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