Credit card users urged to take action

Research from uSwitch.com suggests that a degree of consumer “lethargy” has meant credit card providers can introduce relatively uncompetitive repayment plans and yet retain customers for years.

According to the price comparison service, around 20 per cent of British credit card users are not happy with the service they are getting and many face debt management difficulties, but the typical consumer sticks with their credit card provider for a period of close to six years.

Mike Naylor, personal financial expert at uSwitch.com, said: “Credit card companies are relying on customer lethargy, and, with over half of consumers never comparing their existing deal with the rest of the market, clearly people are playing directly into their hands.”

Figures from MoneyExpert.com recently showed that people using their credit card to withdraw cash face interest rates on average of around 23.5 per cent.