Latest Debt News
Credit card costs increase
14/04/2008 12:33:00
The effects of the credit crunch are increasing costs for credit card users, despite the Bank of England (BoE) cutting interest-rates three times, one financial expert has claimed.
Figures from MoneyExpert revealed that the average interest rate on credit card purchases has increased by 0.56 per cent in the past six months, now standing at 17.12 per cent.
The standard rate on a balance transfer has risen from by 0.83 per cent from 15.12 per cent to 15.95 per cent.
Sean Gardner of MoneyExpert.com said: "Everyone is finding it more difficult to make ends meet as the cost of living rises. People will want to turn to credit and that means splashing the cash on the plastic."
He added that most consumers would normally seek out a new zero per cent deal to tide us over the during the times, but "with lenders playing a cautious game getting one of those cards is more difficult than it used to be".
Meanwhile, further findings from the company showed that credit card companies have gained £3.1 billion worth of credit by cutting the spending limits of their customers.
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