Rates are rising, this time its Credit Cards

If you have a credit card, chances are you have seen your interest rate rise recently. The average interest rates for purchases have risen over the last two years from 14.9% to 16.4%.

Borrowing on a credit card has always been considered an expensive way to borrow and as the banks try desperately to claw back the money they leant out, many hard up families will feel the burden of these rate hikes. Of course, the banks will always tell you borrowing on a credit card should be considered for the short term only and if you pay your balance each and every month you won’t notice any difference. This is all well and good but this is the real world and we cant all do that. The banks are not the only ones who are feeling the pinch of our recent economic downturn. Instead of reaching out a hand to fellow sufferers they just want more of your money. Once again it will be those that are already struggling that will be hit the worst, if you can only just afford to make the minimum payment, your debt is growing.

On top of that, the interest rates for cash advances have rocketed in this period from 18.1% to a massive 24.3%. And if that wasn’t enough the fee for taking a cash advance will most likely have increased too. Previously the majority charged a 2% fee with a minimum of £2, nowadays however the majority charge 3%, with a minimum of £3.