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Credit card interest rate - DebtFC Livingston, West Lothian, ScotlandUK, 17th February, 2010 - Credit card rates are at their highest for 12 years despite interest rates being at a record low. The average APR on credit cards is now 18.8%, the highest since February 1998. In February 2008, the average APR charged on cards was 16.8%, with the Bank of England's base rate at 5.50%. The APR jumped to 17.7% a year later, while the current high comes at a time when the base rate is at just 0.50%. The high credit card rates could cause difficulty for thousands in the UK, as many people rely on credit cards to pay their bills. At DebtFC we find that most of our customers have 3 or 4 credit cards. Information shows that around14 million people use credit cards to pay for day-to-day expenses, the UK continues to suffer from a high level of unemployment and lenders are concerned about the increased risk of customers not repaying their debts. Borrowers with £5,000 debt on their cards who repay the minimum each month will have to pay an additional £2,289 over the life of the debt, when compared to February 2006. Other charges such as balance transfer, cash withdrawal and foreign transfer fees also continue to go up, leaving customers paying more across the board. For free debt advice and help call DebtFC now on 0800 007 5307 or email info@debtfc.co.uk |
