Credit card fees ‘will become the norm’

Annual fees on credit cards will become the "norm", according to Defaqto.

The independent financial research firm’s head of banking said yesterday that there will be a "gradual move" by credit card providers to implement these charges, which will in turn see consumers "jettison" their cards in an attempt to manage their debts.

David Black also said that current trends, such as offering a zero per cent interest rate for a limited amount of time, encourages "disloyalty" as consumers change their credit card provider on "a regular basis".

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The website added that people should consider a debt consolidation loan if it reduced the total amount that had to be repaid over the life of the loan and if it reduces monthly repayments.

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