British consumer have been warned to keep a close eye on their credit card arrangement details in the run up to Christmas to avoid being hit by newly introduced fees.
Cathy Neal, senior researcher for consumer group Which?, suggests that a number of financial service firms are adjusting their lending practices in the wake of the so-called credit crunch and advises consumers to be wary of inadvertently adding to credit card debts.
Moreover, Ms Neal expects to see the fall out from the global financial market turmoil continue to impact British banks and consumers into the new year.
“You just need to review your card on a regular basis, make sure that new fees haven’t crept in – and that you’re using a card that suits your spending habits,” she said.
“We would never recommend withdrawing cash from a credit card, because you get charged interest straight away; there’s no interest-free period.”
Billions of pounds worth of credit card debt is likely to be accumulated by British shoppers in the weeks before Christmas, according to the UK’s payments association Apacs.