08/06/2007

A major survey of UK consumers has revealed that many are extremely unhappy with the costs and service provided by their credit card company, suggesting many would be better off with a secured loan.

The US switch study showed more than one in five credit card carrying Brits are unhappy with their card, equivalent to a staggering seven million people.

Chief among the complaints raised were excessive interest rates being charges, poor value for money and bad customer support; replacing credit card debt with a cheap loan could, however, help solve these problems.

"Credit card companies are relying on customer lethargy, and, with over half of consumers never comparing their existing deal with the rest of the market, clearly people are playing directly into their hands," said Mike Naylor from uSwitch.

"Providers have spent the last year constantly introducing 'get rich quick schemes' for their own benefit yet customers are still prepared to stick with them for years. Year on year the number of people falling into this trap grows as more are lured in by their existing bank or building society's cross-selling tactics."

He also accused the credit card industry of treating their customers "like money-making cash cows".

Source: http://www.netloans.co.uk/articles/Secured-loans-avoid-credit-card-stress-363.aspx