Credit cards 'sting customers'
13 November 2008
Brits tempted to try and ease their money worries by taking out a credit card might want to think again on the back of data that suggests cards are getting more expensive.
Research from Moneyfacts shows that since the start of August this year, 16 cards have increased their purchase APR and 12 have upped the rates of cash per annum.
A further 11 cards have introduced higher balance transfer fees and seven have cut the amount of interest free days offered to customers.
Michelle Slade, an analyst at Moneyfacts, said: "During the past year, card companies have continued to increase the charges on their cards and consumers will find they will be stung more severely than ever before."
She went on to point out that paying off the minimum balance on a card was the biggest mistake customers make, saying that even saying a little over the smallest amount could reduce interest and repayment time.
Prime Minister Gordon Brown has recently hit out at retailers for offering store cards with high charges during this difficult economic time, according to the Mirror. The newspaper reports that customers now owe £55 billion on plastic cards.
