Crunch your credit card this Easter break

With credit card interest rates being at their highest in twelve years, it’s important to plan your Easter holiday money.

Despite the Bank of England rate at its all time low of 0.5 per cent, the increase in defaults during the recent recession rose, and credit providers are pricing that cost into their APRs. Even existing users who pay the minimum each month, have always stayed within their credit limits and have never missed a repayment are being affected.

A recent survey found that one in five Britons used a credit card overseas in 2009, spending roughly around £600 per traveller. These are worrying figures when you take rising interest rates plus fees for using a credit card abroad into context - Easter holidaymakers could be stung for thousands!

James Hickman, managing director at Caxton FX comments, “In this credit adverse climate, it’s advisable that people heading overseas this Easter plan their travel money in advance. With a Caxton FX prepaid currency card, you know exactly how much you are spending and as there are no extra fees or charges, it takes away the shock of discovering that you’ve been charged, marring a great break.”

Most cards levy a fee of around 2.75% on the foreign exchange mark-up, as well as charging commission. Additionally, overseas ATM withdrawal fees are rife. Most credit card issuers charge a cash advance fee which can be as high as 3%, so you could be paying anything up to £8.00 to withdraw £100 or equivalent and that’s before any interest. Caxton FX prepaid cards, have no overseas ATM Fees. There are no handling charges, top up fees or transaction fees and because the balance is preloaded, you get to enjoy your Easter break without the worry of overspending and paying extortionate interest when you get back.

Hickman continues, “With the current weakness in the pound there has never been a better time to be smarter about your foreign currency and make your pounds stretch further.”