Last year credit card companies raised interest rates on over 6 million cards for existing customers and most maximise their profits by paying off the cheapest debt first.
If your credit card company has raised your interest rates or you’ve ever transferred your balance to a 0% card and not realised that card companies currently pay off the cheapest debt first, today’s announcement is good news. The government says it’s reached agreement with credit and store card providers that will give consumers better rights in five key areas. The changes won’t be introduced until later this year and the government is planning to legislate if card companies don’t stick to this voluntary code (although with an election around the corner, that part may not happen).
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