Credit card debt becoming more expensive
Credit card debt becoming more expensive
Wednesday 23rd July 2008
According to data compiled by moneysupermarket.com, nearly a third of credit card holders have seen the APR on their existing card increase in the last year.
Among the companies named by the price comparison site as hiking rates on their credit cards are online bank Egg, Capital One, Lloyds TSB, MBNA and Barclaycard.
Steve Willey, head of credit cards at moneysupermarket.com, said: "Firms writing to customers telling them their APR is about to increase will only exacerbate the debt problem in this country - especially given recent statistics showing the average cardholder has over £5,000 of easy credit at their fingertips.
"Increasing the interest on purchases will only make those rising food, fuel and mortgage bills harder to pay, and lengthen the time it takes people to clear their debts."
The anticipated surge in Britons struggling with credit card debt this year is expected to fuel a surge in consumers seeking out professional debt advice.
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