According to new
credit card measures, the Government is looking to make the
deal fairer for borrowers. The plan for the new
credit card arrangement could see
credit card lender forced to reduce the most expensive part of
their
debt, which could save
card holders millions of pounds in
interest payments .
Credit card companies could be forced to change their
debt repayment strategy, saving nine million borrowers an
average of £225 per annum, according to the government. A package
of measures has been introduced by Gordon Brown.
At this stage, when cardholders transfer a debt to a
credit card provider at low or zero rates of
interest, and then purchase items at a high rate of interest,
most credit card companies force borrowers to pay off
cheaper debt first, leaving costlier debt on cards for longer
and earning more interest for the companies.
