Millions of credit card borrowers are about to get scary new annual statements in the post that highlight just how much they have spent plus the charges and interest paid over the year.
Around 31 million credit card spenders will receive the statements that are designed to show credit card spending at a glance.
Every card company has to send a statement with standard information to each account holder, which will let borrowers compare costs and benefits across their cards for the first time.
The statements all show:
• The time covered by the statement
• Total spending
• The amount repaid
• Any interest fees and charges
• The balance change over the year
The statement will also reveal the card holders spending habits by breaking down transactions for shops, cash advances, balance transfers and separating them for overseas and the UK, while showing fees and charges for each type of spending.
Some statements are already in the post and most credit card holders can expect their statement to arrive on the anniversary of opening their account.
Melanie Johnson, of trade body the UK Cards Association, said: "Annual credit card statements will help empower customers by giving a clear view of how they've each managed their plastic over the past year.
“By clearly setting out costs and charges this industry initiative could help customers get a better deal either by being more savvy about how they use their current card, or by changing to another account that's a better fit."
The move follows last year credit card changes aimed at giving more information and control to borrowers, like online statements, halting unsolicited credit card cheques and raising credit limits and rates without clear warning.
Meanwhile, the Bank of England quarterly credit report for March reveals credit card spending has fallen over the past three months, but demand for personal loans has slightly increased, as many borrowers struggle with their debts.
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