Monday 27th of April 2009
Credit card customers are being charged higher interest rates as a result of the increasing risk that they will not pay, it has been suggested.
According to Moneyfacts.co.uk, charges are rising because providers consider there to be a greater chance of people defaulting.
Those who have found that they have debt management problems as a result of such increases may wish to seek IVA help, as they might be able to have interest charges frozen if they are unable to cope.
Spokesperson for the price comparison site Michelle Slade also noted that consumers concerned with debt management should resist the temptation to withdraw cash on their cards.
"Taking cash out on your credit card should always be avoided as the interest rate is usually over 25 per cent per annum," she said.
Ms Slade’s comments come after uSwitch.com revealed that 16 per cent of people with this form of finance make cash withdrawals around five times every year.
