Do you know the purchase rate on your credit card?

According to CHOICE around half of Australians say they do not know the purchase interest rate on their credit cards.

The average credit card interest rate is 17.16 percent and the nation’s total card debt is $36 billion.

“Credit cards are marketed as a convenient payment option, often with a modest annual fee, honeymoon interest rate periods and seemingly lucrative rewards programs,” CHOICE CEO Alan Kirkland said.

“But the real rewards program here is for our banks, who earn an estimated $6.2 billion in revenue from average credit card interest rates.”

CHOICE CEO Alan Kirkland said that anyone who does not pay off their balance in full every month should check their card rate and shop around for a low-rate, low-fee card.

Source: The Daily Telegraph