New research from Moneyexpert.com has revealed that nearly five million people in the UK were hit by credit card penalty charges last year.
The analysis, undertaken with Defaqto, found that one in nine UK residents had faced the charges from their credit card providers.
Credit card charges are imposed when customers exceed their credit limit or do not pay off the minimum instalment by the correct date.
The study also discovered that while up to 4.5 million Brits plan to change their credit card provider at some point during this year, many of them do not know how to go about finding the best deal for them.
Sean Gardner, Moneyexpert.com chief executive, said: “A single late credit card payment can cost as much as £35 so it is worth handling your finances well.”
“It is worrying that so many people do not feel adequately informed about their credit cards. The current market puts such an emphasis on interest rate that people may have lost sight of the complexities of some financial products.”
He addded: “You shouldn’t even consider taking out a financial product if you don’t feel you fully understand what you are buying.”
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