Sunday 22nd of August 2010
Consumers facing high interest rates on credit cards are unlikely to see improvements in the near future, according to one expert.
A spokeswoman for moneyfacts.co.uk explained lenders consider the risk of defaulting on payments to be too high for charges to be lowered.
She was commenting after Bank of England figures showed rates on this form of finance increased in June, despite the base rate remaining at its record-low level of 0.5 per cent.
If you are struggling to cope with the cost of credit cards and unsecured loans, individual voluntary arrangement (IVA) answers may help you see there is a way to get out of the red.
Hard work and commitment is required, but an IVA can allow those who owe more than £15,000 to establish an affordable monthly repayment, with the slate being wiped clean after five years.
And more people could be set to seek such help, as the moneyfacts.co.uk representative suggested many borrowers could be sent "over the edge" by further rate increases.
By Kimberley Parsons
- House price rise 'may not indicate recovery'
- Equity release 'needs to be increased'
- Need for IVA help could increase as expert predicts reduction in lending
- Government announces 'breathing space' for those needing IVA help
- Lack of subprime lending creating need for IVA help, expert suggests
- Expectant parents: Are you worried about your finances?
