Further increase expected with credit card interest rates
July 5, 2010 by Reno
Filed under Credit Cards
Over recent years there has been a lot of controversy with regards to the high rate of interest that is charged on many credit cards, with campaigners, consumers, and various other officials pointing out that the gap between the base interest rate – which is at its lowest level on record at just 0.5 percent – and the average credit card interest rate was getting wider and wider.
Whilst the base rate has been at its all time low for well over a year now credit card interest rates have continued to increase, leaving many credit card customers who are unable to settle their balances in full at the end of each month facing very high levels of interest on their debts. However, despite the controversy it appears that the problem could be set to get worse.
According to reports experts from the credit card industry are predicting that credit card companies are set to increase credit card interest rates even further, and this could further impact on the finances of many people that are already struggling to stay afloat. Experts believe that credit card providers will increase their rates in order to offset the risks that they are having to take.
Recent research showed that over five million consumers in the UK had admitted to using their credit cards on a regular basis to make bill payments and other essential payments, and this means that the higher interest rates could take their toll on many people.
Tags: credit card interest rates, risk, rate of interest, Credit Cards, Credit cardA spokesperson from Moneyfacts.co.uk said: “Providers have been putting rates up and obviously there’s high unemployment and the risk of people defaulting and not repaying their debts is still quite high, so they’re very strict on who they give their cards to. The customers that pay off just the minimum every month are going to be the ones who are hit hardest. They’re going to add, maybe, hundreds of pounds extra on to their debt and take a lot longer to repay [it].”
How you can benefit from a notice savings account
There are many different types of savings accounts available these days through the UK’s banks, with something to suit most needs and circumstances, and enabling consumers to save towards a special purchase, for the future, or simply towards a rainy day. One type of account that can prove invaluable is the notice account, which offers consumers a great way to save and helps them to resist the temptation to make impulse withdrawals. Read more
Tags: rate of interest, personal finance, Money market deposit account, rate, different notice accounts, rainy day, periodBRC advises on store cards
August 1, 2007 by admin
Filed under News, News-Credit-Cards
The British Retail Consortium (BRC) advised British consumers yesterday that they must decide for themselves as to whether store cards were worth getting.
The credit cards, increasingly popular with UK shoppers, are offered by many large retail chains, such as IKEA, River Island, Mothercare and Debenhams.
Typically, they offer an interest-free period of around 55 days, and discount around 10 per cent from the first purchase.
Set against this is the mounting evidence that store cards consistently charge more interest than is usual. Recent research from consumer website Moneyfacts found that store cards charged 24.3 per cent interest, compared to the overall average APR of 16.7 per cent.
Press officer at the BRC said that the cards “offer a range of benefits to customers, including special promotions for cardholders, discounts and the opportunity to accumulate transaction-based loyalty points”.
He added that “as long as the rate of interest on store card debt is made clear to customers at the outset and there is full transparency of all terms and conditions, consumers are, and should be, able to make the appropriate choice for themselves”.
