Consumers 'should ask for lower credit card rates'
Published On 8 May 2008
A consumer website has urged credit card users to ask their lenders to cut the interest charged on their borrowing.David Kuo, head of personal finance at Fool.co.uk, explained that the average annual percentage rate (APR) on popular credit cards currently stands at around 16 per cent.
The company has calculated that this means credit card customers in the UK pay £7.7 billion in interest payments every year.
However, Mr Kuo stressed that credit card interest rates are "not set in stone, and are open to negotiations".
According to the website's estimates, a one per cent cut in credit card interest rates would save consumers an extra £74 million every year. Mr Kuo pointed out this was "a fraction of the £50 billion bailout that lenders are grabbing from the central bank".
He concluded: "Fool.co.uk therefore urges card holders to ask their providers for a reduction in interest rates. Banks may want their cake and eat it, but we deserve a slice too, since we are paying for it."
Recent figures from MoneyExpert.com showed that 3.24 million people have had credit card applications turned down in the last half-year period.
