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Moneysupermarket.com has hit out at Government changes to those with credit card debts criticising them of not doing enough.

The Government have laid out a series of measures that it hopes will help borrowers tied to credit cards. Now those who are struggling to pay their credit cards will now be allowed a 60-day reprieve in an attempt to raise funds to meet the bills.

But moneysupermarket.com says this will not do enough to help those people with spiralling debts.

Kevin Mountford, head of banking at moneysupermarket.com says: "The agreement between the Treasury and credit card companies looks like a classic summit communiqué – which says a lot and means nothing.

“For example there is no commitment on the "order of payments" issue which sees most card companies apply payments to customers' cheapest debts first.

“And a one month window isn't enough time for struggling borrowers to reach agreements with all of their creditors, three months would have been better, along with a commitment not to apply for a Charging Order to take possession of borrowers' homes.”

"What's more, a likely result of what the Treasury has achieved is that it will get harder for people who want to take out a new credit card to be accepted. The Government needs to understand that it can’t control both the supply of credit and the price."

To Keep up with news and comments on the current adverse credit market please visit the Adverse Mortgage Blog.