October 3, 2007

UK spending high on credit cards

Credit card customers are withdrawing cash from the credit cards at a rate that could fund some government departments. It is estimated that in the UK alone over £8.5 billion is taken out in cash every year, and the cost of these withdrawals is costing them a lot more.

According to moneysupermaket.com the cost for taking out just £20 from a cash machine on a credit could be as high as £65 over the year, which is just staggering. Most credit cards will charge around £2 to £5 per withdrawal plus there are other fees too and it all adds up when someone withdraws cash once week or so.

If possible people should just use their current accounts for cash withdrawals, the long term benefits are clear.

Source [Finance Markets]