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CAB issues warning over credit cards

Thu, 17 Aug 2006

Britons could be paying more than they need to by being "ill-informed and unconfident" about credit cards, the Citizens Advice Bureau (CAB) has warned.

The organisation claims that some credit card providers are exploiting the lack of confidence and experience to make "handsome" profits.

Moira Haynes, spokesperson for the Citizens Advice Bureau, commented in the wake of recent moneysupermarket.com research which suggested that the credit card market is a "maze" in the UK.

The research suggested that more than ten per cent of UK credit card holders have chosen the wrong service.

Ms Haynes stated: "We estimated that the collective cost to consumers of poor financial skills could be as much as £4 billion pounds paid in unnecessary interest on consumer credit and £4.5 billion paid in inappropriate debt consolidation."

She continued that improving the nation's financial skills by education and providing better quality of advice are key to ensuring Britons manage their money better in future.

"The pace of change in the financial services market has made it very difficult for people to keep up with those changes," the expert concluded.


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