A recent study published by moneyland.ch points out that most of credit card providers increased fees for Visa and Mastercard. Why such an increase? What cost for consumers? Explanation.
As a reminder, the maximum interest rate for loans and credit cards has decreased from July 2016. While the old maximum rate was 15%, it is now 10% for personal loans, and 12% for credit cards. This interest rate applies to all unpaid – or partially paid – credit card balance.
For the credit cards providers, this new rate leads to a shortfall. The main of fees increase is to compensate for those losses. If each provider offers different ranges of products, a study by moneyland.ch shows that the following fees increased in a significant way:
There are two solutions to minimise credit cards costs: limit fees and limit the interest paid. In order to lower the paid interest, you should avoid partial payments. If it is not possible to pay a full bill, and if you consider a repayment over a number of months, then you should also consider a debt consolidation loan. Indeed, this solution will allow you to pay less interest on the amount you owe.