Thursday 3rd of February 2011
People who discover their credit card usage has landed them in serious debt and are finding it difficult to resolve the situation, may wish to start seeking individual voluntary arrangement answers.
New figures from Moneyfacts have shown credit card rates have reached a 13-year high, following steady increases since the economic downturn began to take hold in 2006.
The rate now stands at 18.9 per cent and Michelle Slade, spokesperson for the organisation, said the increases are due - in part - to fears that customers will not be able to repay their debts should they become unemployed.
She explained: "This increased risk continues to be passed on to both new and existing credit card customers through higher interest rates."
Credit Action's latest debt statistics recently showed total UK personal debt at the end of December last year stood at £1,425 billion following a 0.1 percentage point decrease in the 12-month growth rate.
By Rachel Powell
