Latest Debt News
Barclaycard rates up
03/03/2006 17:21:00
Barclaycard has announced it is increasing its rates by between one per cent and two per cent, as it voices its concerns about the levels of debt in Britain.
The UK's largest credit card provider has made the changes despite the fact that the Bank of England has been reducing the base rate in recent times, reports ITN.
"It is a reflection of the changing market conditions. As it gets more risky to lend, we have to change our rates to reflect that," said a spokesman for Barclaycard.
The news comes after the financial services provider said it had seen large increases in bad debt levels and was worried that the situation could worsen.
From November 14th, the bank will also reduce the number of rates it offers on its products from 30 to five. All rates will range in value between 14.9 per cent and 27.9 per cent.
The spokesman concluded by saying that rises in mortgage repayments and National Insurance contributions could also increase the likelihood of people sinking further into debt.
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