Cash withdrawals will cost you more

21/03/2007

Many people are not fully aware of the true cost of using your plastic in your pocket to withdraw cash from an ATM.

Latest research from uSwitch has highlighted that since May 2005 fees for making cash withdrawals has increased from an average of 20.83 to 27.06 APR. All this has gone on with not many actually noticing. These increases could add 334 million to UK credit card bill for the Brits.

The study also discusses that around 1 million Brits believe that using their credit card to obtain cash via a cash machine was free.

Nick White, Director of financial services for uSwitch said “People who use a credit card to withdraw cash may already be struggling under the burden of debt and are having to resort to this method of borrowing to make ends meet”.

It is also believed that the problem is made worse and there has been a 11 per cent rise in credit card to cash withdrawals this has been as a result of chip and pin cards that were launched last February.

Additional research from APACS shows that credit card to cash withdrawals fell by 8% last year.