Credit deals ‘getting worse’

Credit deals available in the UK are getting worse as far as borrowers are concerned, according to a recent study.

Figures from Moneyfacts have shown that the costs associated with taking on credit card debt have been increasing in recent months and that lending criteria continues to be tightened.

In addition, the fees attached to many of the credit card deals on the market have been raised since the start of the year and borrowers are thought to be paying the price.

And the issue is of growing importance because more and more people are using credit card debt to cover their everyday living costs, Moneyfacts reports.

“Rates and charges on credit cards are only likely to continue to increase in the months ahead,” said a Moneyfacts spokesperson.

“If you are not happy with your current deal, make sure you shop around for a better one.”

Alliance & Leicester reported recently that the rising inflation rates in the UK have sparked an increase in debt consolidation activity around the country.

Written by Giles Stevenson