Brits making costly credit card withdrawals
According to recent reports many Brits are spending a small fortune on making credit card withdrawals, which are known for being costly. Moneysupermarket.com claims that many consumers in the UK are taking money out of cash machines with their credit cards, and as a result of this credit card companies are cashing in on the profits, whilst consumers are forking out a fortune in fees and charges for the privilege of taking money out on their cards.
Many officials are concerned that Brits tend to forget how expensive credit card cash withdrawals can be, but as many cardholders know these fees can quickly add up over the course of a month or even a year. Consumers are being urged to make purchases directly with the credit card wherever possible, and to avoid making cash transactions and withdrawals unless absolutely necessary.
It is estimated that around £8.5 billion is being taken out of cash machines each year in the UK using credit cards, and this amounts to a tidy profit for card issuers when charges are applied for the transactions. Experts state that withdrawing around £20 per month, which totals around £240 a year, could cost the consumer about £65 per year, which is nearly 25% of the amount that has been withdrawn over the course of the year.
Consumers are urged to only withdraw cash on their credit cards if they really need to and cannot make the purchase direct on their card. Most consumers will be charged between £2.50 and £5.00 per withdrawal, and this also applies to customers that pay their credit card balances off in full each month.
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