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Billions wasted in credit card charges, study shows

Tue, 14 Nov 2006

UK consumers are losing billions of pounds in credit card charges, according to new research.

Britons have "wasted" £1.7 billion over the past two years in charges issued by their credit card providers, a study by Moneysupermarket.com has revealed.

The survey indicates that one in five UK customers fail to switch to another card when the term ends on their 0% credit cards.

On average, Britons keep the credit card for seven months after the period has expired, although one-third retain the plastic for 12 to 18 months.

Robert Kenley, head of credit cards at Moneysupermarket.com, commented: "Balance transfer cards offer a sensible way for borrowers to manage their debt, and wherever possible people should try to clear their balance during the 0% offer period."

He added that many credit card users are transferring the balance onto alternate credit cards without intending to pay off the debt.

Abbie Shelton, a spokesperson for the Association of British Credit Unions, recently claimed that credit card providers are often too willing to lend to customers, increasing the level of consumer debt.


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