Britons wasting 17 billion on credit card charges
Nov 23, 2006
Britons have wasted £1.7 billion in credit card interest charges by not switching cards when their zero per cent offer finishes, claims price comparison service moneysupermarket.
The company said that 18 per cent of credit card holders did not switch cards when the zero per cent period was over, sticking with the same card for an average of seven months afterwards.
Customers who don't switch face sudden rises in interest charges, the company said, with an average rate of 16.46 once the initial offer is over.
The head of credit cards at Moneysupermarket said that while balance transfer cards provided a sensible way for borrowers to manage their debt and try to clear their balance, only 15 per cent of consumers actually managed to do this.
Those who regularly switched debt from one card to another would find it increasingly difficult to do as banks looked for new ways to claw back the money they lost on zero per cent deals, he added. Other borrowers may choose to go for a secured loan rather than choosing credit cards as their preferred way to borrow.
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