Half of consumers do not know how much interest they are paying on their credit cards, according to new research from the Financial Regulator.
The regulator is urging credit card holders to learn more about the interest they are being charged on their credit card and to switch to cheaper providers.
Short of using a money lender, the interest rates charged on some credit cards are among the most expensive in the country.
45% of credit card holders surveyed do not pay their balance in full each month making them eligible for interest.
Excluding introductory rates, standard interest rates range from 9.4% to 18.9% on purchases. American Express charges the most expensive interest rate on the market.
Interest charged on cash withdrawals can be more expensive with Ulster Bank charging 22.5% once its introductory offer rate has lapsed.
The regulator, which had produced a new booklet on how charging on credit cards works, urges consumers against using a credit card for long-term borrowing.
There is widespread concern about the level of personal debt in Ireland and the regulator is also urging consumers not to use one credit card to pay off debts on the other, and not to reuse their credit cards until their debts are cleared.
More information is available on the regulator's website at www.itsyourmoney.ie.
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