NAB to help cut credit card repayments
National Australia Bank has announced a shake-up of its credit card repayment system whereby high interest will be paid before lower interest items.
Announcing the change, NAB personal banking group executive Lisa Gray said that it is common practice across the banking industry to accept repayments for debt with the lowest credit card interest rate first, leaving the higher interest balance to attract charges.
"This will no longer be the case for NAB customers," she added.
"Credit card transactions attracting the highest interest rate will be paid off before the lower interest rate, helping to reduce the overall interest cost to our customers."
The move may tempt Aussies looking to compare credit cards with a view to switching to cheaper options. According to NAB, the changes are expected to save money for 1.5 million personal and commercial customers.
Meanwhile, Clifford Reichlin, who runs the online forum frequentflyer.com.au, recently told the Sun-Herald that frequent-flyer programs run on credit cards are often money-spinning marketing tools that do not necessarily offer benefits for consumers.
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