Thursday 11th of June 2009
The recent increase in charges for credit card holders has been described as "disappointing".
Saga noted that borrowers need competitive deals in the current economic climate, but many are finding it harder to pay off their debts.
Chief executive of the personal finance group Roger Ramsden explained that its own products allow customers to reduce the most expensive debts first, lowering overall costs.
Borrowers who have built up significant levels of debt may wish to consider a solution such as an individual voluntary arrangement (IVA), particularly as Moneyfacts.co.uk has found that the average credit card rate increased by nearly two per cent in the last two years.
"It is disappointing to see that despite a series of cuts to the Bank of England base rate, many credit card providers have increased the APR available on their products," said Mr Ramsden.
Which? recently argued that credit card companies are exploiting customers because they may not be able to find finance elsewhere, which could increase demand for IVA help.
- 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
- Men - don't bury your heads in the sand on IVAs
