0 percent cards could help consumers to save money
For many people, the burden of their credit card debts has become huge, not only because of the amount of money that they owe on their various credit cards but also due to the crippling level of interest that many credit card firms charge. With high interest credit cards much of the borrower’s monthly repayment is swallowed up in interest, which means that it will take a very long time and a lot of money to pay off the card.
It therefore comes as no surprise that so many people with a range of credit card debts are keen to try and pay off their higher interest debts. Whilst many cannot afford to pay off their credit card debt in one go, one option they do have is to transfer the debt off the high interest cards onto 0 percent balance transfer cards, which will enable them to save money on the amount of interest they pay.
With a range of lenders and banks offering 0 percent credit card for those that want to transfer high interest balances, it is essential for those that want to try and save money in this way to do their research and look for the best deals on 0 percent plans. The interest free period can vary from one provider to another as can the transfer fee, so one deal could end up being a lot better than another, hence the importance of researching.
One industry expert said that it was important to avoid companies that charged surcharges on cards in order to further bring down their spending.
He said: “The best way to avoid greedy businesses who try to profit from debit card surcharges is to avoid them and take your business elsewhere.”
Ryanair causes outrage once again with its prepaid Mastercard
Over recent years the no frills airline Ryanair has been rubbing people up the wrong way time after time after time. The airline is always on the receiving end of some accusation or another with regards to trying to squeeze as much cash as possible out of consumers and misleading them by making their flights look really cheap at first glance but then adding on a myriad of fees and charges that can result in the end cost soaring to way more than the consumer thought he or she was going to pay.
This week has seen Ryanair once again come under fire over its tactics and its determination to make as much money as possible from every passenger. Controversy has now arisen over a prepaid Mastercard that Ryanair is due to launch in October, which will be the only card that consumers can use in order to avoid the costly charges that are imposed by those booking flights with the airline.
With all other cards customers are forced to pay an extra £6 per passenger each way by way of an administration fee, which means that for a family of four the extra cost on top of the flight cost would be a massive £48 just in administration fees. However, those that book using the prepaid Mastercard will be able to escape having to pay the fees but will have to make sure that they apply for and are accepted for the card before they book.
Ryanair’s Stephen McNamara said:”Ryanair’s £6 admin fee will not apply to any bookings made with Ryanair Cash Passport. Also there are no transaction charges for using the card at UK merchants until 31 March 2012, so we recommend that UK passengers make the switch to Ryanair Cash Passport as soon as possible to take advantage of the no fee offer.”
Consumers continue to be hit by card surcharges
These days many consumers who are planning a trip abroad book their travel online with the use of a credit or debit card. However, whilst this provides convenience and ease for travellers it is has also resulted in many people being ripped off by airlines and travel firms who impose costly and unfair surcharges simply for the privilege of using their cards.
The consumer campaign group Which? took on the fight against these charges earlier this year, launching a super complaint and calling for an investigation to be carried out by the Office of Fair Trading. The OFT announced recently that it agreed that excessive surcharges needed to be banned and that a simple change to existing government regulations would make this possible.
However, officials from Which? have said that customers are still being charged a small fortune on the cost of their travel by airlines and some holiday firms due to these surcharges continuing to be applied. It has said that the government is not acting quickly enough and states that action needs to be taken sooner rather than later with regards to rip off fees and charges.
With so many people that pay by card for their travel the collective losses amongst consumers is staggering, with around £265,000 a day being spent on charges and fees to travel firms and airlines by those using their cards. This is something that Which? wants to put an end to so that consumers are not financially penalized for using their cards.
An official from Which? said: “With most airlines yet to drop these card surcharges and some introducing new fees, it’s time for the Government to put a stop to this.”