With the choke of the credit crunch, consumers must wonder if the interest lies for them, as credit card companies have accumulated some £3.1 billion dollars by reducing their customers’ credit limited to curb their spending, evidence shown by MoneyExpert.com.
“Everyone is finding it more difficult to make ends meet as the cost of living rises. People will want to turn to credit and that means splashing the cash on the plastic.” Sean Gardner of MoneyExpert.com said.
“This means more of us will have to use our current credit card and if the zero per cent deal has expired you’ll be borrowing money at a rate of around 16 per cent. So be careful what you spend on the plastic because the interest will soon mount up.”
Meanwhile, Nationwide has urged credit card companies to make customers aware of the order in which they are repaying their debts, because most providers will clear the cheapest debts first.
All credit card companies will soon have to include this information on statements, but Nationwide suggests that they do so now, because until the new Department for Business, Enterprise and Regulatory reform rules comes into affect, customers could have paid out another £500 million in interest.
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