19 March 2009
Credit card providers in the UK need to allocate their payments in a positive way, which could see consumers given a much needed cash boost, it is believed.
New research from Nationwide suggests the UK should follow the example of the US by allocating customers' payments to higher rate balances first, which in turn will reduce interest payments.
"In the meantime, credit cardholders should look at how their card provider allocates payments. They could certainly save money by switching to a provider, like Nationwide, who pays off the most expensive credit card debt first," comments Nationwide's Consumer Finance Director Jeremy Wood.
Consumers simply cannot afford to be losing money at the moment, Mr Wood adds, which is why the company feels it is time for this legislation to be introduced.
Earlier this week, the government announced measures to stop credit card providers increasing borrowing limits without consumers' permission. Looking for a new credit card? Compare prices online now.