The annual percentage rates (APR) being charged on credit card debts in the UK are increasing despite the Bank of England’s cuts in the base rate of interest, it has emerged.
According to figures from MoneyExpert, the typical APR being charged by British credit card lenders has risen from 16.56 per cent to around 17.12 per cent over the course of the past six months.
Financial services firms are getting tough in response to the credit crunch and are offering less generous terms on their credit card deals, the price comparison firm has claimed.
Millions of UK consumers are finding it impossible to become debt free and balance transfer rates have also been rising in recent months, MoneyExpert has reported.
The company’s chief executive Sean Gardener said: “Be careful what you spend on the plastic because the interest will soon mount up.”
Earlier this month, a MoneyExpert report suggested that the credit card limits offered by lenders in the UK have been reduced considerably since the start of the credit crunch.