Britons making unnecessary cash withdrawals
by Kay Murchie
Moneysupermarket.com, the price comparison site, has established that Britons are taking out £8.3 billion cash on their credit cards each year and paying a huge premium in doing so.
Moneysupermarket.com has highlighted that one £20 cash withdrawal each month can result in cardholders paying £65 in fees and interest over the year – even after paying off the balance at the end of each month.
A spokesperson for moneysupermarket.com remarked that people should think very carefully before using their credit card to withdraw cash. Most cards have a withdrawal charge of between £2.50 and £5 apart from Egg Money which does not charge any cash withdrawal fees.
Moneysupermarket.com concluded that where possible, people should only draw from their current account. Those who run out of money but still need to make purchases should opt for a credit card with 0% which is far more cost effective.
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