Credit card holders ‘wasting money’ on withdrawals
October 2, 2007 by admin
Filed under News, News-Credit-Cards
Consumers in the UK who use their credit cards in order to make cash withdrawals could find they are paying way over the odds in order to do so.
According to research from Moneysupermarket, Britons withdraw £8.3 billion using their credit cards annually – but they could be paying 27p per pound in interest and charges over the year.
The average amount paid across the major providers on one £20 withdrawal a month over the course of 12 months is 15 per cent, or £36.
“At a cost of up to 27p for every pound taken out, this is an exceptionally expensive way to spend,” said the price comparison site’s head of credit cards Rob Kenley.
“Wherever possible you should only withdraw cash from your current account, but we realise sometimes people face unexpected emergencies.”
A separate study from Abbey found recently that 23 per cent of credit card holders intend to consolidate different credit cards using one that offers a good value deal.
