Credit card debt 'easier to pay off' when stealth charges ended this autumn
Credit card debt 'easier to pay off' when stealth charges ended this autumn
- Thursday, 3 June 2010Credit card debt could become easier to pay off when MBNA, the UK's largest card provider, ends a long-standing stealth charge in the autumn.
According to Moneysavingexpert.com this change will stop penalising consumers who use plastic for a cheap balance transfer. It will affect all cards issued by MBNA such as those from Virgin Money.
From September 1st, consumers will be paying off the
credit card debt with the highest interest rates first, to ensure that extra charges are not added to the original amount.
Consumers who have different card providers will have to wait until next year to feel the benefits of this change.
Dan Plant, money analyst for the website, said: "While it is good news the industry is finally changing some of its profiteering ways albeit after significant pressure millions must still beware this stealth charge for now and not spend after a balance transfer, or risk huge interest penalties."
Nationwide already clears the expensive debt, from spending, first and it states that many customers pay £224 in extra charges.
The former Labour government announced a crackdown on credit card charges in March and from January 2011, consumers could save between £300 million and £500 million collectively.

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