'You can't make this up!': Man shares shocking price hike for his credit card
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In a world where the cost of living is constantly on the rise, Australians are being increasingly vigilant about their finances.
When unexpected fees crop up and leave a dent in wallets, the reaction is always swift and severe.
This was the case for Aaron Smith, as he discovered that his bank decided to hike his annual credit card fee.
Mr Smith, an HSBC credit card holder, did not have annual fees from his credit card.
However, Mr Smith received a letter informing him of an 'important change' to his HSBC Premier World MasterCard.
The letter stated his annual credit card fee may hike up to $399 and should take effect on or after 11 March 2025.
However, the letter did not have any information or explanation about the fee increase.
Mr Smith took to social media to express his disbelief about the steep increase.
'I don't think so, HSBC,' he wrote in the post.
The post quickly garnered the attention of many Aussies as they echoed Mr Smith's frustration.
'You can't make this stuff up! B***** h***,' one commenter exclaimed.
'That's wicked. Cancel it and burn the b***** thing. That goes to executive salaries,' another said.
'This seems excessive. This is why I don't have a credit card,' another said.
Mr Smith's situation, however, was not an isolated case.
A 2023 research conducted by the financial website RateCity found that credit card fees from seven providers rose by 200 per cent within three months.
The majority of these increases were for rewards cards—cards touted for their extensive benefits, all while hiding costs.
Sally Tindall of RateCity shared that these fee hikes were among the steepest she had ever seen.
Ms Tindall urged credit card users to reassess their cards and whether they were still getting value for their money.
'What was right for you a few years ago may not be right for you today because of a change in the way you spend or your financial goals,' Ms Tindall added.
Mr Smith's issue was also part of a broader trend revealed by the Reserve Bank in its January bulletin.
Australian households have paid almost 10 per cent more in bank fees in the 2023/24 financial year.
The bulletin also stated that credit card and personal loan use has skyrocketed due to the cost-of-living pressures.
Credit card fees saw an 11 per cent increase, attributed in part to Australians spending more overseas.
Meanwhile, personal loan fees have jumped by 34 per cent.
The takeaway from Mr Smith's experience is clear: it's crucial for Australians, particularly seniors, to stay updated about their financial products.
If you find yourself facing a similar situation as Mr Smith, it's essential to weigh your options.
Can you negotiate the fee with your bank, or is it time to shop around for a better deal?
What do you think of Mr Smith's situation with his bank? Share your thoughts and opinions about credit card usage in the comments section below!
When unexpected fees crop up and leave a dent in wallets, the reaction is always swift and severe.
This was the case for Aaron Smith, as he discovered that his bank decided to hike his annual credit card fee.
Mr Smith, an HSBC credit card holder, did not have annual fees from his credit card.
However, Mr Smith received a letter informing him of an 'important change' to his HSBC Premier World MasterCard.
Mr Smith enjoyed his HSBC credit card without any annual fees before the hike. Image Credit: Pexels/Anete Lusina
The letter stated his annual credit card fee may hike up to $399 and should take effect on or after 11 March 2025.
However, the letter did not have any information or explanation about the fee increase.
Mr Smith took to social media to express his disbelief about the steep increase.
'I don't think so, HSBC,' he wrote in the post.
The post quickly garnered the attention of many Aussies as they echoed Mr Smith's frustration.
'You can't make this stuff up! B***** h***,' one commenter exclaimed.
'That's wicked. Cancel it and burn the b***** thing. That goes to executive salaries,' another said.
'This seems excessive. This is why I don't have a credit card,' another said.
Mr Smith's situation, however, was not an isolated case.
A 2023 research conducted by the financial website RateCity found that credit card fees from seven providers rose by 200 per cent within three months.
The majority of these increases were for rewards cards—cards touted for their extensive benefits, all while hiding costs.
Sally Tindall of RateCity shared that these fee hikes were among the steepest she had ever seen.
Ms Tindall urged credit card users to reassess their cards and whether they were still getting value for their money.
'What was right for you a few years ago may not be right for you today because of a change in the way you spend or your financial goals,' Ms Tindall added.
Mr Smith's issue was also part of a broader trend revealed by the Reserve Bank in its January bulletin.
Australian households have paid almost 10 per cent more in bank fees in the 2023/24 financial year.
The bulletin also stated that credit card and personal loan use has skyrocketed due to the cost-of-living pressures.
Credit card fees saw an 11 per cent increase, attributed in part to Australians spending more overseas.
Meanwhile, personal loan fees have jumped by 34 per cent.
The takeaway from Mr Smith's experience is clear: it's crucial for Australians, particularly seniors, to stay updated about their financial products.
If you find yourself facing a similar situation as Mr Smith, it's essential to weigh your options.
Can you negotiate the fee with your bank, or is it time to shop around for a better deal?
