Credit card users 'will not benefit from rate cuts'

Christmas shoppers who are planning to use their credit cards to purchase the bulk of their festive gifts will not benefit from the recent cut to interest rates.

According to data compiled by Mozo on behalf of the Daily Telegraph, only five out of 58 credit card providers have slashed their rates by the amount advised by the Reserve Bank of Australia earlier this week (December 6th).

This means that people will spend at least $30 million extra on their presents this year.

ANZ was the only major bank to cut its rates, while some plastic issuers, including the Macquarie Bank, actually raised the rates on some of their products.

Director of Kirsty Lamont told the news provider that it typically takes at least two months for Aussies to pay off the card debt they accrue at Christmas.

"The banks might have decided to play nice for home loan customers, but credit card customers are not seeing the same festive spirit when it comes to rate cuts," she commented.

A recent study by cosmetics specialist the Heat Group found that 63 per cent of Aussie women will spend as much this Christmas as they did in 2010.

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