Twist in tale as credit card customers made to pay most expensive debt last!

Credit card customers are being tricked by several major card providers. The customers are being forced to pay off their lowest interest debts first, thus leaving the biggest debts until the end, according to moneysupermarket.com.

They have found 8 of the major providers carry out this practice, with Nationwide being a rare exception.

By imposing this practice, the unfortunate credit card customers are oblivious as to just how much much their credit is actually costing them.

Head of credit cards a moneysupermarket.com, Steve Willey gives the example of a customer carrying out a £2,000 balance transfer at 0%, then accruing a further £1000 of spending on the card. If that customer paid off £2,500, then the remaining £500 balance would accrue interest at the typical APR (which is roughly around 15.9%) rather than continue to benefit at a 0%rate as they would no doubt have expected.

Mr.Willey cannot stress enough how important it is for consumers to always read the small print and to understand what 0% really means. He believes the providers are keen to lure potential customers with 0% deals, yet reluctant to spell out exactly what certain terms mean. A customer must check out the best deals for their personal circumstances and ensure it is a good deal for them and not just the card provider.

He does pick out Nationwide as a shining example of how a card provider SHOULD treat its customers. It is not widely known for its credit cards, so this commendation may help to improve its popularity and notoriety.

A Nationwide spokesman is delighted for this recognition and confirms that his company ensures that its customers’ credit card payments are applied to the most expensive debt first and urges others to do likewise. In the meantime he can only advise customers not to just jump in to a tempting low introductory rate, without looking into it more deeply.