By extending the term ‘cash advance’ to include charges for gambling and gift tokens many could face unexpected debt problems if they are unable to recognise when they will be charged for this service.
Some credit card companies have made it harder to control credit card debt by altering their terms and conditions to include cash ‘substitutes’ in their cash advance clause.
The interest rates on all standard cards for ordinary purchases will be 16.9% but any purchases which fall into a cash ‘substitute’ will incur interest at 24.9%.
There will be no fee for cash handling and you can take advantage of the interest free period if you pay off the balance in full.
Always read the terms and conditions!
NatWest or Mint cardholders should read the new updated terms and conditions which will inform you that any gift vouchers, electronic transfers or gift cards which can be redeemed for goods will be charged at the higher rates.
If you own a Lloyds TSB credit card you should check the small print on the terms and conditions as lotteries and betting (including buying chips at the casino), will be charged at the higher rates. The Lloyds Platinum Mastercard will now charge you 27.9% for these purchases in comparison to 15.9% for ordinary purchases. There will also be a 2.5% fee on the amount of money that you have withdrawn and a minimum charge of £2.50. Do not expect an interest free period as there isn’t one, even if you pay the balance in full.
Some good debt advice…
Avoid these charges by using your debit card or switching to Barclaycard who have resisted the temptation to add on these colossal charges.
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Whatever the reason we need the advance for, itis almost always womething unexpected. What we do know is that there is a solution to help us out.
Gambling, buying gifts or compulsive shopping all contribute to a debt situation that can get out of hand. The solution seems to be being honest about the situation and disciplining ourselves to live within means.