Monday 8th of June 2009
Lenders are "cashing in" at the expense of credit card holders, an expert has argued.
Martyn Saville of Which? stated that borrowers are suffering from high rates that can have "no justification".
Recent Moneyfacts.co.uk figures indicated that the average credit card rate is around 18 per cent - a level Mr Saville observed is nearly 40 times the Bank of England’s base rate.
It could mean that more people are considering debt management plans as a means to keep on top of their finances, as the study noted that charges have actually increased by nearly two percentage points over the last two years.
Mr Saville criticised the trend, explaining that the greater risk of default is unlikely to have much to do with this, while interbank lending rates have come down.
"They are not making much money from current accounts and their other activities, so credit cards are an easy target for profit making," he said.
