Credit card borrowing ‘getting more expensive’

The costs associated with spending via credit card debt are increasing, it has been claimed.

According to a report from MoneyFacts.co.uk, the headline interest rates linked to 19 of the leading high street credit card deals have been hiked over the course of the past three months.

Moreover, some credit card debt users have seen rises in the costs they incur for making cash withdrawals, switching their balances and paying for goods or services on holiday.

In some cases, lenders have also reduced the minimum repayment level, which the price comparison firm suggest could be interpreted as an effort aimed at “squeezing more profit from those who are already feeling the pinch”.

According to Credit Action, the overall personal debt mountain in the UK increases by close to £1 million every five minutes.

By Giles Stevenson