Credit card fees hit 10% of population

Tuesday, January 24, 2006

Almost five million Britons paid a penalty fee on their credit card last year, according to the latest research from MoneyExpert.com and Defaqto.

The comparison website and the financial information and research company joined together to commission research indicating that too many Brits are paying the penalty for exceeding credit card limits and making late payments.

"A single late credit card payment can cost as much as £35 so it is worth handling your finances well," said Sean Gardner, chief executive at MoneyExpert.com.

"It is worrying that so many people do not feel adequately informed about their credit cards. The current market puts such an emphasis on interest rate that people may have lost sight of the complexities of some financial products."

The companies that partnered for the research suggest that the reason for ten per cent of the population racking up fees is a lack of financial education and a poor understanding of the products these people are applying for.

The research suggested that 4.5 million people would change their credit card this year, with MoneyExpert.com and Defaqto fearing that people will not be totally sure which product is best for them.

Find credit card offers here:
http://www.europinions-finance.co.uk/credit-cards/credit-cards/