Credit Card Holders Waste £116m On Fees

UK credit card holders are paying millions in penalty fees.

Late payments and exceeding credit limits cost UK credit card holders £116 million a year, new figures reveal.

And with so many Britons hit by these charges, experts are arguing that credit card applicants need to pay far more attention to how much lapses will cost them.

Currently one UK credit card holder in six is hit by penalty fees, figures from price comparison site moneysupermarket.com reveal, costing an average of £22.68 a time.

But these fees vary by as much as 66 per cent, meaning even careless customers can cut their costs with a little homework.

However, some simple steps can ensure that these charges hit as few people as possible.

"It is vital that consumers are scrupulous with their credit card payments," said Robert Kenley, head of credit cards at moneysupermarket.com.

"At present, deals from credit card providers are becoming remarkably less appealing as they attempt to recoup financial losses.

"Customers would do well to set up a direct debit for the full payment or, at the very least, pay the minimum repayment and then make additional payments when they can. This way they can be assured they won’t miss a payment.

"I also urge credit card holders to be aware of the fees associated with going over their credit limit. Arguably, providers should not allow your payment to go through the credit limit, but they do and instead, you are slapped with a fee for the action."