Switching credit cards 'can limit debt'

The Saga Group has offered free debt advice to consumers, urging them to switch credit cards in a bid to reduce their outgoings.

According to the firm, if all credit card providers had acted to reflect the low Bank of England base rate, many consumers would stand to benefit.

It reported how the rate on the Saga Platinum Visa Card has been reduced from 18.2 per cent to 11.9 per cent in recent months, helping account holders during a difficult time.

Andrew Goodsell, executive chairman of the Saga Group, said that for too long, many users of credit cards have suffered "the double whammy" of high interest rates and an unfair order of debt repayment which favours the bankers over their customers.

He added: "We think this is wrong and call on card providers to play fair by the British public.

"If the bankers don't get the message, the government should act as they have hinted they might have to do in the recent Consumer Affairs White Paper."

Last week, Saga Personal Finance launched a new two-year fixed-rate bond, which pays a rate of 3.85 per cent AER on balances above £30,000.

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2009-10-13 12:40:48 © Moneyextra.com