New reward credit card 'good for those with debt problems'?
New reward credit card 'good for those with debt problems'?
- Monday, 7 June 2010A new reward card launched by Egg on June 5th could benefit those living with
debt problems as savings can be made.
The credit card gives consumers a typical ten per cent cash-back on purchases from over 1,500 retailers.
New customers can also benefit from zero per cent interest on purchases until September 1st, while no annual fee is paid for the card.
Harald Schneider, head of Egg Cards, said: "With people increasingly tightening their belts and looking for the best deals, we believe the Egg Visa Card provides unbeatable offers; and as the reward is cash not points it means customers can clearly see what they are saving whilst they spend."
As 67 per cent of the population shop on the internet, the new card offers online purchase protection so that consumers do not need to worry.
Kevin Mountford, head of banking and credit cards at MoneySupermarket.com, believes this card has its benefits because of the rewards.
However, he warned that consumers could get into financial difficulty if they use the card for a balance transfer and do not pay it off before September.
Users who fail to clear the entire balance could get into
debt problems as the cheapest expenses will be paid off first when the zero per cent interest rate expires, meaning that debt could quickly accrue on the more expensive items purchased using the card.

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