Millions unaware of credit card charges

We just love credit cards and use them to pay for everything. But do you know the ins and outs of your current credit card setup? We bet you don’t.

That’s the scary thing about credit and the nation’s obsession with credit cards. We use them to pay for pretty much everything; big and small, monthly and weekly, but very little is known about the ‘small print.’

One recent report backs up our concern. Out of five thousand people questioned, 34 per cent said they had no idea what the interest rate was on their card, and what kind of charges they would incur if they ever didn’t pay balances off. Over 43 per cent of people also said that having some form of credit card debt wasn’t really debt because ‘everyone has debt on a credit card’.

Even more frightening was that 78 per cent of people weren’t aware that if they used their credit card to draw money out of a cash machine, that they would be charged. That means that well over half of people questioned will have drawn money out at some point and simply haven’t been aware that they have been charged for the privilege – it’s pure madness.

People are seemingly far too relaxed when it comes to credit cards, and money in general. Every little charge adds up and people could unwittingly be blowing hundreds of pounds annually because they are oblivious as to what charges they incur when they make certain purchases.

Credit cards are hugely popular, and the reasons for this are obvious – but they are only a good when they are used correctly and not relied heavily upon. Unfortunately, however, they are relied upon by the majority of people nowadays, and it is this that gets people into debt problems that they often struggle to get out of.

People need to get a handle on their spending, and a good place to start would be understanding charges and fees that these cards come with. It’s mind boggling to think that millions of people out there don’t know the ins and outs of their credit card limits.