As per a recent proposal, the Government is likely to re-look some credit card terms which are being viewed as 'unfair', and completely do away with the same with a view to stop credit card companies from continually raising interest rates on debts which have not yet been paid.

Another thing which credit card firms will not be able to do, once the Government takes a final call on the proposal, is to increase someone's spending limit without authority approvals.

A legislation demanding an increase in the size of the minimum payment demanded by the companies has also been put forward. While no formal announcements as to what the minimum figure would be have been made, it has been estimated that the Government is likely to fix it at 5% of the outstanding balance to be the required monthly payment.

"While some may think that having the minimum monthly repayments on their credit card bills increased is a bad move, it is actually a very positive step that will really help consumers in the long run", said Louise Bond, a personal finance expert at uSwitch.

The proposal has found both critics and those who are in favor of it. While some believe that it is not fair on the part of the Government to raise the minimum monthly payment, as not everyone would be able to afford their share, others feel that it is step in the right direction and would mean that debts are paid off faster, and with minimum interest rates. What the final decision will be remains to be seen.