Most Popular
1. It’s a New Macro, the Gold Market Knows It, But Dead Men Walking Do Not (yet)- Gary_Tanashian
2.Stock Market Presidential Election Cycle Seasonal Trend Analysis - Nadeem_Walayat
3. Bitcoin S&P Pattern - Nadeem_Walayat
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
4.U.S. financial market’s “Weimar phase” impact to your fiat and digital assets - Raymond_Matison
5. How to Profit from the Global Warming ClImate Change Mega Death Trend - Part1 - Nadeem_Walayat
7.Bitcoin Gravy Train Trend Forecast 2024 - - Nadeem_Walayat
8.The Bond Trade and Interest Rates - Nadeem_Walayat
9.It’s Easy to Scream Stocks Bubble! - Stephen_McBride
10.Fed’s Next Intertest Rate Move might not align with popular consensus - Richard_Mills
Last 7 days
Why President Trump Has NO Real Power - Deep State Military Industrial Complex - 8th Nov 24
Social Grant Increases and Serge Belamant Amid South Africa's New Political Landscape - 8th Nov 24
Is Forex Worth It? - 8th Nov 24
Nvidia Numero Uno in Count Down to President Donald Pump Election Victory - 5th Nov 24
Trump or Harris - Who Wins US Presidential Election 2024 Forecast Prediction - 5th Nov 24
Stock Market Brief in Count Down to US Election Result 2024 - 3rd Nov 24
Gold Stocks’ Winter Rally 2024 - 3rd Nov 24
Why Countdown to U.S. Recession is Underway - 3rd Nov 24
Stock Market Trend Forecast to Jan 2025 - 2nd Nov 24
President Donald PUMP Forecast to Win US Presidential Election 2024 - 1st Nov 24
At These Levels, Buying Silver Is Like Getting It At $5 In 2003 - 28th Oct 24
Nvidia Numero Uno Selling Shovels in the AI Gold Rush - 28th Oct 24
The Future of Online Casinos - 28th Oct 24
Panic in the Air As Stock Market Correction Delivers Deep Opps in AI Tech Stocks - 27th Oct 24
Stocks, Bitcoin, Crypto's Counting Down to President Donald Pump! - 27th Oct 24
UK Budget 2024 - What to do Before 30th Oct - Pensions and ISA's - 27th Oct 24
7 Days of Crypto Opportunities Starts NOW - 27th Oct 24
The Power Law in Venture Capital: How Visionary Investors Like Yuri Milner Have Shaped the Future - 27th Oct 24
This Points To Significantly Higher Silver Prices - 27th Oct 24
US House Prices Trend Forecast 2024 to 2026 - 11th Oct 24
US Housing Market Analysis - Immigration Drives House Prices Higher - 30th Sep 24
Stock Market October Correction - 30th Sep 24
The Folly of Tariffs and Trade Wars - 30th Sep 24
Gold: 5 principles to help you stay ahead of price turns - 30th Sep 24
The Everything Rally will Spark multi year Bull Market - 30th Sep 24
US FIXED MORTGAGES LIMITING SUPPLY - 23rd Sep 24
US Housing Market Free Equity - 23rd Sep 24
US Rate Cut FOMO In Stock Market Correction Window - 22nd Sep 24
US State Demographics - 22nd Sep 24
Gold and Silver Shine as the Fed Cuts Rates: What’s Next? - 22nd Sep 24
Stock Market Sentiment Speaks:Nothing Can Topple This Market - 22nd Sep 24
US Population Growth Rate - 17th Sep 24
Are Stocks Overheating? - 17th Sep 24
Sentiment Speaks: Silver Is At A Major Turning Point - 17th Sep 24
If The Stock Market Turn Quickly, How Bad Can Things Get? - 17th Sep 24
IMMIGRATION DRIVES HOUSE PRICES HIGHER - 12th Sep 24
Global Debt Bubble - 12th Sep 24
Gold’s Outlook CPI Data - 12th Sep 24

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Take Control of Your Debit and Credit Card Debts and Get Back in the Black

Personal_Finance / Debt & Loans Nov 24, 2015 - 03:31 PM GMT

By: MoneyFacts

Personal_Finance

Consumers who are hoping to snap up a great deal in the upcoming Black Friday sales need to make sure they don’t lose their heads when its comes to their finances, warns Moneyfacts.co.uk.

Millions of shoppers are expected to take advantage of offers both in shops and online this Friday (27 November), but the cost of using an overdraft or a credit card to bag some goodies could kill the buzz of the bargain hunting.


While interest-free credit cards and fee-free buffers on overdrafts certainly exist, the majority of credit cards, store cards and high street bank accounts do in fact have high charges borrowers would be wise to avoid (see table below).

Rachel Springall, Finance Expert at Moneyfacts.co.uk, said:

“While it’s tempting for shoppers to go on a wild spending spree, they would be wise to take a moment to consider the actual cost of using their credit card or overdraft, particularly if they know they won’t have sufficient income to get back in credit in the short term.

“It’s so easy to borrow money using an overdraft or credit card, and contactless payments are making this process even quicker. However, buyers need to be careful not to overspend as they could end up being hit with costly charges.  

“Some banks have moved away from charging interest on their overdrafts and have instead turned to daily charges. While this does give customers greater transparency, it also means that many are now paying more. Some banks charge customers £1 a day to borrow from a planned overdraft and up to £5 daily for exceeding the limit. So if £300 is borrowed for half a month, this could end up costing borrowers an extra £75 in charges.

“Store cards are a convenient method of payment, but they can charge up to 29.9% APR on purchases. As a result, they should only ever be used for the upfront signing-up perks because better cards can be found elsewhere.

“If borrowing can’t be avoided, there are simple ways to reduce costs. For example, by using a competitive money transfer credit card, customers can redit their bank account to save them the pain of excessive overdraft fees. Customers can also use an interest-free balance transfer card to avoid credit card charges and gain a bit of breathing space to pay off outstanding balances. Some of these deals have no fee to move debts, which will also help to keep costs down.

“To control debt, consumers must digest the importance of paying more than the minimum monthly repayment on credit cards, or they could become embroiled in a vicious cycle of debt. Tackling the problem early is the best way to get back in the black as the longer the debt remains, the harder it is to pay off.”

www.moneyfacts.co.uk - The Money Search Engine

Moneyfacts.co.uk is the UK's leading independent provider of personal finance information. For the last 20 years, Moneyfacts' information has been the key driver behind many personal finance decisions, from the Treasury to the high street.


© 2005-2022 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in