UK consumers are collectively wasting £150 million a year through late credit card payment charges, according to new research. Most of this is ironically due to ignorance and not having a direct debit to make payments. A study by comparison website confused.com has revealed that 57.5 per cent of credit card customers don't have a direct debit in place to make the minimum repayment.

This makes them more liable to an average late payment charge of £12, which contributes to the overall UK credit charge bill of £150 million. Some conservative financial analysts say this is an atrocious amount in a country which is going through a credit crisis. There are customers who miss out on their periodic payment due to sheer ignorance.

Over a quarter (26 per cent) of credit card holders have been charged at least once in the last year for missing a payment, while 8.5 per cent have been charged three times or more. Over half (57%) of credit card holders do not have a direct debit set up to pay off the minimum amount. This has led these account holders to pay high rates of interest.

Alex Higgs, commercial analyst at confused.com, said: "As well as late payment charges, many credit card holders are likely to have lost out on attractive introductory deals or low interest rate offers as well. These deals are often withdrawn if minimum payments aren't met, meaning more money is wasted as they are reverted onto higher rate deals."

Mr Higgs advised consumers to set up a direct debit as missing minimum payments can also adversely affect customers' credit profiles and hinder their chances of borrowing finance. Making timely payments will help contribute to a healthy credit profile which increases the borrowing power in the future. Money paid on paying interests can be used to pay minimum charge to the banks.