Latest Debt News
Card providers can help ease the credit crunch
09/05/2008 12:03:00
Despite interest rates being slashed three times since December, nothing has been done to reduce the interest charges on outstanding credit card balances, one financial expert has claimed.
Fool.co.uk said that the domestic effects of the credit crunch on consumer purse strings could be eased by reducing the typical Annual Percentage Rate (APR) on popular credit cards which is around 16 per cent.
David Kuo, head of personal finance at Fool.co.uk, said that APR rates are not set in stone and could be open to negotiation.
"Consumers carry about £64 billion of outstanding credit-card debt, of which three-quarters is interest bearing," he stated
Mr Kuo added: "This means we are forking out £7.7 billion in annual interest payments - around £250 for every credit-card holder a year."
Previously Fool.co.uk warned consumers to be prepared for job losses after the Insolvency Service reported a 4 per cent rise in the number of firms going bust in the wake of the credit crunch.
© Adfero Ltd