It has been suggested that credit card customers, with higher interest rate cards, can have them lowered, by simply contacting their providers and negotiating with them, according to industry officials.
An official from Fool.co.uk recently said that many credit card customers were getting a raw deal on their interest rates, he said: “The typical Annual Percentage Rate (APR) on popular credit cards is around 16 per cent, which is over three times higher than the Bank of England base rate.
Officials state that those with a good payment history, good credit, and a long standing relationship with the card provider are most likely to succeed, as the interest rates on credit cards are flexible at the lender’s discretion.
Consumers carry about £64 billion of outstanding credit-card debt, of which three-quarters is interest bearing. This means we are forking out £7.7 billion in annual interest payments; around £250 for every credit card holder a year.”
He added: “But APRs are not set in stone, and are open to negotiations. Every 1 per cent reduction in APRs represents an extra £74 million that go into consumers’ pockets to ease the credit crunch. It is a fraction of the £50 billion bailout that lenders are grabbing from the Central Bank, which is, after all, our money.”
He went on to say: “Fool.co.uk therefore urges card holders to ask their providers for a reduction in interest rates. Banks may want their cake and eat it, but we deserve a slice too, since we are paying for it.”
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