Assuming that all outstanding
consumer credit is loaned on credit cards and that, for illustrative purposes, the
consumer only pays interest on the total credit amount outstanding per annum
(i.e. consumers do not repay the loan amount), then the cost of credit is calculated for
each of the 14 Member States for which data is available. The difference between the
cost of credit in each Member State and the EU average costs of credit (calculated as
15.8% typical AER for the 14 Member State) is then estimated.
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