It’s pathetic. And regular readers would be aware of previous newsletter which have pointed you to the best value cards.
But to get fundamental charge I reckon you need to publicise the worst offenders and try and shame them into changing.
Consumer watchdog Choice have looked at all credit cards available and concluded the worst 5 are:
– Latitude Gem Visa: 24.99 per cent
– Latitude Mastercard: 24.50 per cent
– Skye Mastercard: 23.99 per cent
– Latitude GO Mastercard: 22.74 per cent
– Latitude 28 Degrees Global Platinum Mastercard: 21.99 per cent
CHOICE is calling on banks to cap interest rates at 10% to stop the spread of long-term credit card debt… and I couldn’t agree more.
According to CHOICE, if you had a $5000 credit card debt with Community First’s 8.99 per cent credit card and made only minimum repayments, you’d pay $7625 over the 15 years and 10 months it would take to pay off the debt ($2625 in interest)…. Assuming you didn’t keep spending on the card.
If you had a $5000 credit card debt with CBA’s 19.74 per cent card and made only minimum repayments, you’d pay $23,078 over the 43 years and four months it would take to pay off the loan ($18,078 in interest).
That difference is $15,453 in interest and 28 years 6 months in the time it takes to pay it off.
A common theme of these high interest credit cards is that they are commonly offered through retailers as a way of financing a big purchase.