Brits urged to watch out for credit card 'catches'

Thursday, November 12th 2009

It is important not to be caught out by credit card charges, according to the Mirror, which offered a number of helpful tips for those on a "financial detox".

Minimum payments are one area to keep a close eye on - while low payments of between two and three per cent may seem appealing at first, repaying debts at this rate could mean it takes years to clear - and hefty interest can be racked up in the meantime.

And while zero per cent transfer deals "are great for clearing existing debt", it is essential to avoid the temptation to spend even further - as this could leave the cardholder further in the red.

The newspaper also advised avoiding cash withdrawal fees and credit card cheques "like the plague", as these often come hand-in-hand with high rates of interest and handling fees.

PricewaterhouseCoopers suggested earlier this month that "urgent changes" are needed in the credit card market, as the current model may be unsustainable.