Credit Card Cash Withdrawals - Cheap Money?
While the majority of the UK adult population have access to a credit card, more and more are starting to use their credit cards for cash withdrawals. Do you know how much a credit card cash withdrawal actually costs you? You may be shocked!
A recent survey has shown that the average interest charge on credit card cash withdrawals has actually risen to 27% from a level of under 21% just 5 years ago. While normally the financial companies may be able to explain this away by the rise in UK base rates, this does not really relate to the extortionate cost of credit card cash withdrawal charges. Amazingly, there are even a small minority of credit card holders who believe that there is no charge for cash withdrawals.
Research has also shown that in 2006 alone there were an unbelievable 47 million credit card cash withdrawals, totalling some £5.37 billion. This equates to around £800 per consumer, with an average interest charge of some £29.18. These figures may explain how the banks have continued to push their profits ahead at a time when they have been under pressure from the regulators.Â
We have recently seen a number of high profile credit cards brands changing hands for enormous figures, with speculation that the likes of Barclay Card may be attracting interest from third parties. As the circulation of physical cash continues to fall, we are seeing more and more people convert to electronic “cashâ€.Â
The Office of Fair Trading have already acted against the so called “door step†lenders who were charging sky high fees - are credit card cash withdrawal charges next in line for a review?
You must be logged in to post a comment.