The government ‘has to cut credit card rates to ease debt’

Credit card rates need to be slashed by the government to help people struggling with debt and to aid the revival of the economy, an industry expert has suggested.

Peter Gerrard, from Moneyextra.com, said that blame for high credit debt statistics should not be diverted from the Bank of England, rather the government should be listening to what taxpayers have to say.

He commented: “If the banks continue to keep credit card rates as these exceptionally high rates, there is no way consumers have a chance of paying off their debt.”

The government needs to stop debating and take action to lower the numbers and prevent the general public from falling into “debt doom”, he added.

Last month, figures compiled by Moneyfacts.co.uk revealed credit card rates had reached a 12-year high – peaking at 18.8 per cent – the steepest since February 1998, when they stood at 21.1 per cent.

By Joe Shervin