Credit card Cash costly at Christmas
With the peak shopping season on our doorstep, it's not unusual for many Christmas shoppers to turn to their credit cards to get some extra cash for that perfect present. But getting cash this way could cause long term financial pain, warns MoneyExpert.com.
The average annual percentage rate (APR) on cash withdrawals is 21.27 per cent, making this a costly way to boost the Christmas coffers.
Only 11 providers charge less than 15 per cent for cash withdrawals. Even for those who pay off the balance, the costs are still high, with the charge for withdrawals at an average of £2.60 or 2.46 per cent for larger sums.
That means you pay £2.60 up front plus £21.82 in interest for the first year. Even for small sums the fee is the same, so a £20 withdrawal could still cost you 13 pence for the withdrawal.
The average annual percentage rate (APR) on cash withdrawals is 21.27 per cent, making this a costly way to boost the Christmas coffers.
Only 11 providers charge less than 15 per cent for cash withdrawals. Even for those who pay off the balance, the costs are still high, with the charge for withdrawals at an average of £2.60 or 2.46 per cent for larger sums.
That means you pay £2.60 up front plus £21.82 in interest for the first year. Even for small sums the fee is the same, so a £20 withdrawal could still cost you 13 pence for the withdrawal.
Read more at: Credit card Cash costly at Christmas
posted by e-borneo.com @ 6:05 PM
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