Debt problems: Consumer Credit Directive

Consumers who have been suffering from debt problems and hoped to become better informed about personal finance by the Consumer Credit Directive, could end up more confused than ever.

That's the opinion of consumer group uSwitch.com, which says it may even leave consumers "more bewildered and discontented than before."

Set to become enforced on February 1st, as few as one in ten consumers actually understand what the Directive will mean for them - while more than half don't even know what it is.

People who have dealt with debt problems in the past could be in danger of falling into the same trap.

uSwitch.com explains that's because three quarters of consumers don't understand the new representative APRs - which could become significantly higher under the Directive.

In terms of debt problems, however, this may work in consumers' favour.

The study finds that two-thirds of people saying they'd be put off applying for a credit card if rates became higher than advertised.

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