AA is the latest credit card to change the way customers’ debt payments are allocated.
From the start of September, the most expensive debts will be paid first.
MBNA announced similar changes last week. Both companies have introduced the changes in advance of the government set deadline on January 2011.
It means balances with lower interest rates will be paid last so that more expensive debts do not escalate.
AA Financial Services director Mark Huggins says “The AA welcomes this positive move, which will save money each month for any customers who have balances at different rates.”
The AA has also announced an extension of its 10 month zero per cent interest deal on all purchases to all online customers.
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