- Friday, 4 June 2010For AA credit card customers, it could become quicker to pay off a
debt management plan from September 2010.
AA has announced that the way payments are allocated to a credit card balance is changing for the better and debt could be paid off faster.
From September 1st, repayments will go towards paying off the balance with the highest interest rates first, which means customers will be accruing less interest on their debts.
Mark Huggins, director of financial services for the AA, said customers will benefit before the government-led changes are implemented at the beginning of next year.
He said: "The AA welcomes this positive move, which will save money each month for any customers who have balances at different rates."
MBNA, the UK's largest card provider, announced yesterday that they would be implementing the same policy for repayments from September.
According to the building society Nationwide, many customers pay about £224 in extra charges on cards per year.
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