People power gets the credit for better rates
TENS of thousands of credit card customers fed up with the soaring costs of using plastic have joined the fight to lower the cost of debt.
In the first week of the month-long campaign, already more than 30,000 people have signed up to the credit card campaign launched by One Big Switch in association with News Corp.
Through people power, the campaign is working to reduce the pain of paying by credit card by unlocking a group-discount offer to those who join.
Latest Reserve Bank figures shows the nation has racked up a giant $51.46 billion in credit card debt and more than $33.1 billion is accruing interest.
One Big Switch spokesman Joel Gibson says customers are fed up with being gouged by lenders offering cards with high annual fees and exorbitant interest charges.
“For a lot of people their credit card debt is a dirty secret that they’ve kept in the bottom drawer and even tried not to think about too much themselves,” he says. “People are really frustrated with the high interest rates and they haven’t come down even though the cash rate has plummeted over the past four years.”
And credit card interest rates continue to remain high – some cards have interest rates on purchases as high as 26 per cent.
A senate inquiry into credit cards is investigating the interest rates and fees on plastic. Card rates have sat at an average of 18 per cent despite the official RBA cash rate falling to a record low 2 per cent.
The Big Debt Switch has already exceeded its target of 25,000 supporters by month’s end. Join the Big Debt Switch to help unlock a number of deals that could lower the cost of debt for many households.
There is no obligation to take up the offer. NEWS CORP AND ONE BIG SWITCH WILL EARN A COMMISSION FROM ANY ACCEPTED DEALS