Wednesday, March 3, 2010
Category:
Consolidation
According to Caxton FX, credit card interest rates are at their highest level for twelve years. Therefore, the foreign exchange company is highlighting the importance of planning that Easter holiday money.
It has been revealed that despite the Bank of England rate being the lowest it has ever been at 0.5 percent, the recent recession saw a rise in defaults – a cost that credit providers are factoring into their APRs. It would seem that even existing credit customers who pay the minimum each month, whilst never exceeding their credit limits or missing a payment, are being affected.
Findings from a recent survey showed that last year one in five Brits utilised a credit card whilst abroad, with the approximate spend per traveller coming in at £600. Caxton FX views these figures as ‘worrying’ due to increasing interest rates combined with fees for overseas credit card use. It is believed that Easter holidaymakers could ‘be stung for thousands’.
The majority of cards reportedly levy a fee in the region of 2.75% on the foreign exchange mark-up, in addition to charging commission. Furthermore, foreign ATM withdrawal fees are thought to be widespread.
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Homeowners who are currently juggling several credit card bills each month could consider tying these debts up into one place with a
secured loan. One of many finance options available, a secured loan for debt consolidation could leave borrowers with just one monthly repayment. What’s more, this single monthly repayment could even be lower than the sum of current outgoings. However, if opting for a secured loan to consolidate debt, it should be remembered that consolidating your debt may increase the amount you pay back overall and extend the repayment periods of your debts.
