THE Balearic Consumers' Association (ACUIB) warned shoppers yesterday to plan their Christmas spending carefully in order not to be faced with a credit card interest bill that they will find impossible to pay next year.
The Association said that during the Christmas and New Year season, people in the Balearics have a tendency to spend beyond their means largely induced by high profile advertising campaigns.
With particular reference to credit card interest rates which are held for invoicing at a later date, ACUIB pointed out that paying between 1 and 2 percent per month for borrowing builds up to an annual interest bill of 24 percent of net spending. ACUIB compared the high interest rates to other forms of financing where only 10 percent interest is applied.
The Association explained that any fraudulent charging on the internet is not the responsibility of the consumer since according to law it is the financing company which should make arrangements to have any such demands annulled.
ACUIB said that credit card charges for unpaid instalments or for paying in arrears are completely illegal.