Check What You Are Paying On Your Credit Card
Many people use a credit card for purchases on a regular basis and they can be incredibly useful things, offering increased levels of protection and insurance for people buying large or expensive goods, as well as a convenient method of paying.
But a large number of credit card users also have an outstanding balance on their card, which in many cases never seems to get cleared and it is likely that only very few of these people actually know what rate on interest they are paying on their credit card each month.
A new survey conducted by Moneyfacts.co.uk has found that the average cost of a credit card has now reached its highest level in around 12 years and a large number of card providers have just increased their rates in the past few months, due to increased risk from high levels of personal debt on personal loans and credit cards and rising unemployment.
The average interest rate on a credit card now stands at 18.8 per cent, which is the highest level since 1998.
People who have an outstanding balance on their credit card (or cards) have been urged to check to see what rate they are actually paying and also to look into the savings to be made by either switching to a balance transfer card, or taking out a debt consolidation loan, either of which is likely to be cheaper.
Michelle Slade of Moneyfacts.co.uk commented on the rate rises, she said “If customers receive notice of a rate increase, they should challenge their provider for a reason why the increase is necessary, especially if their credit status hasn’t changed.”
“Competitive deals for balance transfers and introductory purchases remain on offer, so it is definitely worth taking the time to see if you can transfer to a better credit card with another provider.”
