Credit cards and other fees cost millions, research shows

Fri, 13 Jan 2006

Britons are digging deep in their pockets to pay penalties and charges on credit cards, overdrafts, mortgages, personal loans and savings accounts, new research shows.

Late payment fees on credit cards, charges for overdrafts, mortgage application fees, penalties for early redemption on personal loans and cashing in early on savings accounts are costing Britons dearly, two financial experts found.

Some £553 million was shelled out on these charges and fees last year, according to Defaqto and financial website MoneyExpert.

This amount was described as "staggering" by the chief executive of MoneyExpert, Sean Gardner.

However, he added that in context it is understandable, as busy Britons have increasingly less time to keep a close eye on personal spending and plan their finances.

"It's therefore difficult for many time-pressured people to make the most of their money, research financial products and ensure they don't fall foul of a minefield of costs and charges levied by providers," Mr Gardner said.

He said many banking customers are "crying out for a helping hand through the complex world of personal finance".

The website therefore offers a number free Defaqto guides on credit cards, mortgages, current accounts and savings accounts to help people sort out their finances and save money.

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