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Consumers 'must shop shrewdly' for credit cards

Consumers 'must shop shrewdly' for credit cards

• Pay off those credit cards with a remortgage or loan

 

Detailed awareness of the terms and conditions of various credit cards should be gained by customers shopping for plastic loans, a leading advisory body has said.

National money education charity Credit Action has urged potential customers to make sure they understand all the charges involved before signing any documents.

Director of Credit Action Chris Tapp commented: "The main thing to look for is the headline rate, which is still the most important thing - what rate of interest are you going to be charged?"

He asserted that buyers must also ensure they are borrowing on a scheme that they can afford to pay off each month to avoid getting into loan-induced debt.

A recent report by the Office of Fair Trading showed that 70 per cent of consumers surveyed did not shop around for the best deal when selecting their current credit card, which may unnecessarily place them in financial strife.

Your home may be repossessed if you do not keep up repayments on your mortgage.

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