The annual percentage rate (APR) has gone up on nearly a third of credit cards in the past year, new research has shown.
Moneysupermarket said some of the big credit card companies – Egg, Lloyds TSB, Capital One, MBNA and Barclaycard – have increased APRs for existing customers. For example, 11 per cent of Egg customers have seen their APRs rise in the past year.
The price comparison site said it was concerning news for people already in debt.
Head of credit cards at Moneysupermarket Steve Willey said credit card companies imposing higher APRs would “exacerbate the debt problem in this country”.
“Increasing the interest on purchases will only make those rising food, fuel and mortgage bills harder to pay and lengthen the time it takes people to clear their debts,” he said.
He commented credit card providers “should play fairer” but added customers should pay attention to APR increases to avoid debt.
Also this week, Money Expert has warned against accruing debt by using credit cards to withdraw money from cash machines.
By Morwenna Kearns