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Cancel paid off credit cards

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If during these difficult times you manage to pay off one of your credit cards, make sure you cancel it or it might affect your credit rating.

The Mirror reports that credit card companies are using all kinds of tricks, which can mean customers end up paying up to £150 for each £100 of card debt.

Fees and penalties are also be added onto bills, credit limit are also being raised, in many cases without customers agreement.

James Daley, money expert from consumer champion Which? says "They encourage debt. MBNA sent out letters promoting a service to transfer cash from your credit card to your current account, making it sound like a good idea - when, in fact, there will be a much higher level of interest on that debt.

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