On the Money: Credit card interest rates may be entering a new era
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Historically, credit cards have always carried high interest rates. But in the UAE, the rates we pay are apparently among the highest in the world, averaging anywhere between 27 per cent and 36 per cent a year.

We pay more interest on our cards than many of our GCC neighbours; in Qatar and Kuwait, consumers pay about 18 per cent interest per year, while Saudis are charged up to 24 per cent.

Then again, there’s also a good case as to why we should consider ourselves relatively lucky. Brazilians, for instance, are slugged up to 200 per cent a year on their credit cards, according to Reuters. Let’s just pause for a moment to imagine those repayments.

“Consumers pay annual rates of up to 200 per cent for normal credit-card loans – the highest borrowing costs for that segment among the world’s major economies,” Reuters said last July in a story about the country’s central bank tightening rules on credit-card loans backed by salaries and pensions.

The interest rates we pay on our credit cards are much higher than other types of credit – such as mortgages and car loans – simply because th…………… continues on The National

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