'Choose cards with low interest' to prevent debt problems
'Choose cards with low interest' to prevent debt problems
- Tuesday, 11 May 2010Consumers are increasingly choosing credit cards for the rewards they offer which can mean getting more for less but caution must still be applied to avoid
debt problems, suggests a money expert.
Moneysupermarket.com revealed that 56 per cent of credit card users chose their cards based on the incentives the providers offered, which can make picking one difficult.
Incentives on offer include air miles, cash back and loyalty club points. Some credit cards even have zero per cent interest on all balance transfers for 16 months such as the Gold MasterCard from Clydesdale and Yorkshires Banks.
Kevin Mountford, head of banking at moneysupermarket.com, suggests that consumers choose a card that will suit their needs best and said those with
debt problems should take a low interest deal to avoid
credit card debt.
He said: "Anyone thinking about taking out a reward card needs to be disciplined and ensure they are paying off the full balance each month, ideally by a direct debit, to avoid getting stung by interest charges."
The poll was carried out by Optimum Research, which questioned 2,009 adults over a week in January 2010.

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