Now that the school and college summer holidays are upon us many families may be planning to head off on their holidays, and many will be relying on their credit cards to fund the cost of the holiday, the spending money, and other costs, particularly in the current financial climate when household finances are strained. Even those that decide not to head on holiday may be planning to use their credit cards to fund the cost of days out and entertainment for their loved ones.

According to a recent report this is something that credit card providers have decided to take advantage of, and a number of credit card firms have decided to increase the cost of borrowing on their credit cards just in time for the summer holidays, which means that many consumers will end up paying a fortune for using their credit cards. In fact, according to officials consumers could end up paying million of pounds more collectively over the period as a result of these increased fees and charges, which include interest rates, cash withdrawal and transaction charges, and foreign transaction fees.

Amongst the credit card firms that have hiked up the cost of borrowing on their credit cards are Nationwide, Mint, RBS, and Capital One. Officials have said that raising fees and charges just before a period when many people are likely to use their credit cards more, such as over the summer holidays, is a common tactic that is used by credit card firms in order to increase profits and revenue by making more money from customers.

Those planning to head off on their holidays later in the summer, and who have not yet got a credit card, are advised to compare different cards from a range of lenders and compare the interest rates, fees, and charges in order to get the most competitive deal.

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