Isaac Moledi

Isaac Moledi

Why should financial institutions make you pay extra for the privilege of spending money?

Do you know just how much your expensive credit cards are quietly robbing from you every month? Swiping a credit should cost you nothing, according to Virgin Money, the company that brought us the famous zero annual fees credit card that offers a whopping 9,5 percent interest rate on all positive balances.

The company believes that this is the perfect time to chuck the robber credit cards out of our wallets and purses. It advises on five things that you might be paying for but don't have to:

lSwiping charges and interest-free period

This is where credit cards do their sneaky bidding - charging you a fee for swiping the card. Why should you be charged? And do you know just how long your interest-free period is? If you aren't getting 55 days, you need to get another credit card.

lAnaemic interest rates for positive balances

When you have a positive balance your card pays you a paltry two percent, not much better than putting your cash under your mattress. Virgin Money recommends choosing a credit card that is serious about rewarding you for keeping your money with them.

lHoliday robbery

Many credit card providers add to already costly expenses by charging you a R50, or more, fee each time you withdraw cash overseas.

lCrushing card fees

Each year millions of people get charged an annual fee for using their credit cards and to pump up the billions of rands in profit banks make off you.