Credit card rates heaping pressure on cash-strapped Britons

Publication date | 14/11/2008

New research released on Wednesday (November 12th) has warned Britons to beware funding their purchases over the Christmas period with their credit cards.

Moneyfacts.co.uk conducted a study which found that a number of providers have significantly increased the cost of borrowing in recent months, despite interest rate cuts.

Since August 1st, the money website notes that there have been 16 cards increasing purchase APRs, 12 cards increasing cash per annum rates and 11 cards hiking balance transfer fees.

Michelle Slade, an analyst at Moneyfacts.co.uk, said: "During the past year, card companies have continued to increase the charges on their cards and consumers will find they will be stung more severely than ever before.

"Unfortunately for consumers it is unlikely that credit card rates are going to come down, so it is more important than ever that they shop around for the best deal and find a card that best suits their needs."

The research also found that seven cards have increased cash advance fees, seven providers have decreased the number of interest-free days on offer and four have increased their foreign usage fees.

According to CreditExpert, 18 million adults aim to save money over Christmas by recycling presents.