Consumers Warned To Avoid Credit Card Withdrawals

In a recent report that has been released, consumers in the UK have been advised to steer clear of making cash withdrawals on their credit cards because of the costly charges associated with cash transactions, and minimal need to have to do this.

Experts have argued that using a credit card to make purchases has been made so easy these days that there is very little need for consumers to have to withdraw cash on their cards, and that those that do this are wasting a great deal of money in interest.

According to Money Expert, for every one hundred pounds that a consumer withdraws on a credit card he or she will pay nearly twenty two pounds in interest over the course of the year. For those making regular cash withdrawals on their credit cards, this can really add up over the year and can end up costing consumers a fortune. Money Expert officials stated that the APR likely to be charged to those making cash machine withdrawals on their credit cards is around 21.27 percent.

For each cash withdrawals made on a credit card, the card issuer charges an average of £2.60, and although this sum can seem relatively insignificant in the grand scheme of things, just a few cash withdrawals each month could cost each consumer over ten pounds just for that month alone.

The Chief Executive of Money Expert, Sean Gardner, stated: "Card firms argue that credit cards are for purchases rather than for withdrawing cash so they charge a premium for those who use them for cash." He also added that there is very little need for consumers to make cash withdrawals on their credit cards these days, because these cards are so widely accepted to make purchases without the need to withdraw cash.

Alisdair Milton
16th November 2006

More Information:

• The Hidden Dangers Of Using Credit Card Cheques
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• Common Credit Card Mistakes
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• Making Credit Card Fees Easier To Understand
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• How To Avoid Paying Those Pesky Credit And Debit Card Fees
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