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"Consumers experiencing credit card woes"

By admin | January 11th, 2009 | Credit Cards

According to a recent report many consumers are suffering because of the state of the credit card market at present, and there are a number of reasons why credit cards keep hitting the financial headlines. One of the major stories that has come to light about credit cards recently is the fact that whilst the base interest rate has gone through the floor, credit card costs have continued to rise, and consumers that are already struggling with their finances are finding themselves also lumbered with huge credit cards bills too.

Credit card firms have been hiking up things like the interest rate charged on the card, balance transfer fees, cash withdrawal fees, foreign usage fees, and more.

In fact, even the Prime Minister Gordon Brown has expressed concern that the credit card firms are fleecing consumers by charging them over the odds on their borrowing. He has now intervened to try and make things easier for those struggling with credit card debt, and the Business Secretary and credit card industry officials have been in talks recently.

Another issue is that many 0% balance transfer deals are being removed from the shelves. One official stated: ‘Capital One, RBS and Mint have all recently withdrawn 0% credit card deals. The market is shrinking so if you want an interest-free deal, make sure you act fast. They are harder to get unless you have a perfect credit history. The market has changed beyond recognition over the past year. It is a real sign of the new era of tightened credit.’

Consumer who are turned down for a credit card are urged not to keep applying as this can damage their credit further. Instead, they should try and focus on clearing existing debts and wait at least three months before making another credit card or finance application.

Tags: 0% credit cards, Credit Cards

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