Changes to consumer credit card rights could result in the average consumer saving £224 a year.

Paying off the most expensive debt first, a ban on credit limits, and better repayment plans – these are just some of the new rights afforded to consumers with regards to credit cards.

The new changes, announced today, will give consumers more control over their finances and save millions of pounds – almost £300 million a year, the government anticipates.

Included in the changes is a reversal of current credit card practice. Currently, consumers have to clear their most expensive debt before being able to clear lower or zero rate debt – such as balance transfers. These new changes will mean that the lower debts can be paid off first, giving consumers more chance to become debt-free.

Kevin Brennan, UK Consumer Minister, said: “This is a big win for consumers and helps to put them back in the driving seat with their finances. When we asked the public what changes they wanted to see we discovered most people did not know the charges worked this way. They thought it was unfair and confusing, and they naturally wanted to pay off their most expensive debts first.

“This is a fair framework of rights and rules that makes sure easy and convenient lending for the majority doesn’t lead to unmanageable debt for the minority who may be in financial difficulty.”

New customers will also see their minimum payments cover not only interest, fees and charges, but also 1% of the debt in an effort “to encourage better repayment practice”. Consumers will have the right to control whether their credit limit is increased or not, and the right to reject increases in interest rates.

Overall, a typical consumer is likely to save £224 in their first year after transferring £2,020 at 0% (the average transfer amount) and making average use and repayments on the card, according to Nationwide.