Hidden Credit Card Charges
Hidden credit card charges can do a lot
to make what you thought was a good credit card offer, really not that
great. Follow these money saving tips from www.BetterMoneyAdvice.co.uk.
Hidden credit card charges can
sting our wallets at the very worst time each month and often, people
don’t understand why it happens. To learn more about unexpected credit
card charges and how to prevent them read on.
Breaking credit card
agreements can often result in hefty charges, causing significant
damage to your finances. To help prevent unnecessary costs we have
detailed the most common card policies which can lead to nasty fines.
Agreed Credit Limits
Depending on the type of
credit card you hold, spending over the agreed credit limit will result
in a penalty, fine or increase on the amount of interest you will have
to pay back to your credit card holder.
Hidden credit card charges: Interest Free
Days and Minimum Payments
Most credit card issuers offer
a payment period that is interest free. Paying your balance off within
this time frame cuts any extra costs to your credit card bill.
Those who opt for paying the
minimum payment each month may find they are only just covering the
cost of interest. For example, if you are paying an interest of 2
percent then minimum payments may not even cover interest costs let
alone the outstanding balance you owe your card provider. To cut hidden
costs, it is advised to pay off your credit card balance in one lump
sum as soon as possible.
Credit Cards Abroad
Credit card users will be
charged for withdrawing cash or making payments when abroad. In a study
by the Post Office, reports showed the majority of credit cards charge
a typical 2.75 percent.
“49 percent of UK
holidaymakers planning to use their credit card when shopping abroad
could be returning with a lot more than just ‘memories and mementoes’
due to hidden card charges,” explains Post Office director of lending
Gary Fitton.
Balance Transfer Fees
According to a report released
at the end of 2007 credit card companies increased balance transfer
fees to stem the flow of card switching and to recoup losses from the
recent capping of default charges.
Prevention
The Citizens Advice bureaux, a
network of independent charities that helps people resolve their money
problems, urges card users to read their credit card contracts very
carefully. Making sure you read the small print can save you money and
time.
In a recent study,
the bureaux constructed a list of helpful tips to prevent unforeseen
charges. Read on to find out their tips.
Understanding Hidden Credit Card Charges
Better Money Advice Tip: Read
the small print on Credit Cards
Neglecting the finer details
of your credit card contract can lead you into great trouble. Check for
any extra cost in your credit agreement and work out the types of
transactions which could lead to a penalty fee at the end of the month-
then take measures to avoid such situations.
Get your priorities right:
Paying everyday bills must be
a priority – splashing out on your credit card can lead you into
dangerous territory if you cannot make credit card payments. Paying the
bare minimum off your credit card balance each month will only increase
the overall cost and length of time you will be paying money back to
your credit card provider.
According to the Citizen
Advice Bureau the key to keeping hidden fees at bay is to budget and be
realist with your money. In addition if can pay for goods with cash.
Cheque or debit card then do so. Read more: Interest Free Overdrafts
Beat Credit Card Debt.
Don’t bank on an overdraft:
The Citizens Advice Bureau
claims that too many of us take advantage of our overdraft facilities.
Instead, it is advised to consult with your bank before indulging in
the overdraft - especially if you intend to spend more than your agreed
limit or have not set up an overdraft in the first place - otherwise
you will be charged.
shop Around for a Credit
Card:
Before signing up to a credit
card - do your research and compare terms and conditions. Interest
rates vary between cards while others other interest free periods.
Budget all the costs before making any contract final.
shopping around for a new
credit card deal? While there are competitive deals available most
lenders rely on consumer apathy and confusion to take your money. Beat
the credit card con with our essential advice.
Find
more money saving tips and advice online at: www.bettermoneyadvice.co.uk
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All
truth passes through three stages. First, it is ridiculed; second, it
is violently opposed;
and third, it is accepted as self-evident. ~~Arthur Schopenhauer
