Home > News > Credit card debt

Disposable incomes `falling` Credit cards `being used to pay off debts` `Not surprising` loans are becoming more expensive Consumers stretching personal finances in DIY stores Credit card debt `to last for over 30 years` Newly-weds `risking debt problems` Save to prevent home disasters Credit crunch not putting off holidaymakers Holidaymakers "complacent" about cards RMIF: Businesses should protect against credit card fraud Bankruptcy warning for holiday Brits Prepaying may end credit card debt Credit cards paid off after age 47 Sainsbury`s Bank: Credit card rewards worthwhile - if you redeem them Credit card rates `are on the up` Over 50s among "hardest hit" by credit crunch `Wiser` use of credit cards could save thousands "Increased pressure" for those in credit card debt Debit cards most popular for plastic spending Tories unveil plans to tackle `debt addiction`

Credit card rates `are on the up`

15/07/2008

Research conducted by Moneyfacts for the Independent on Sunday has found that a number of credit card lenders are raising their rates.

High street banks involved in the increase include Barclays, Co-op, Royal Bank of Scotland and HSBC, the newspaper reported.

In total the Independent said 19 purchase rates have been increased over the last three months.

Michelle Slade, from Moneyfacts, said the scale of increase has not been seen before.

"Generally, hiking the purchase rate is considered a last resort for lenders, as they have to put this headline rate in their adverts," she said.

If lenders need extra cash, they usually increase fees for transferring balances or start charging customers to withdraw cash from ATMs, Ms Slade added.

David Kuo, from Fool.co.uk, said it was getting increasingly difficult for consumers to find a good deal and so they should seize the opportunity if they found one.

Earlier this month the debt consultancy company Thomas Charles warned consumers that credit card companies may start taking users to court in order to recover debts.

Some Scottish house prices still rising 20/11/2008 - Amidst economic gloom and high levels of personal debt, house Energy suppliers’ biggest profits ‘from poor’ 20/11/2008 - Consumer Focus, the new consumer watchdog, has claimed that energy Rise in bankruptcies and IVAs 20/11/2008 - There were 27,087 individual insolvencies in the third quarter of Supermarket price rises ‘far above inflation’ 20/11/2008 - The latest inflation report from the Office for National Statistics