Credit card holders charged ‘extra £41m a year’

Recent uSwitch research suggests many Brits facing debt management trouble are suffering further financial woes due to these “exorbitant rates of interest” being charged on credit card cash withdrawals.

Often consumers deicide to take out cash on their credit card as a last resort during financial difficulties and the added charges on these services is doing little to help ease the country’s debt management concerns, uSwitch suggests.

“While we accept that credit card providers have to make money, and that cash withdrawals carry a higher risk of people getting into bad debt, it is indefensible for companies to penalise their most vulnerable customers,” said Nick White, director of financial services at uSwitch.

Teresa Perchard from Citizens Advice last week moved to highlight the extent to which those people facing a debt management crisis are excluded from the mainstream of the British financial services industry and are often unable to secure affordable credit.