Full understanding ‘crucial with credit cards’

Gaining a full understanding of what a particular deal entails is crucial for consumers looking to take on credit card debt, it has been suggested.

Chris Tapp from the Credit Action charity has compared the process of taking on a credit card to that of buying a car, making that point that it would be foolish to take a new vehicle home based on just one of its attributes.

While the headline rates of interest on credit cards are an important aspect to consider, it is vital that people take the time necessary to fully familiarise themselves with any borrowing deal they enter into, he continued.

“Make sure you understand the whole product,” said Mr Tapp.

“That is the way to avoid getting hit with all kinds of charges, to make sure you are only borrowing as much as you can pay back.”

Data released by MoneyExpert recently showed that there are more than three million people in the UK with five or more credit card deals in place.