Credit card rates ‘on the rise’

Those who took on credit card debt to pay for Christmas may find their situations exacerbated as interest rates appear to be on the rise.

This is according to the Bank of England, which published figures revealing that the average rates in December rose from 15.89 per cent to 16.28, the Daily Mail reports, noting that Capital One did so before the festive season.

One of the biggest cards available on the market, this climbed by seven per cent and some Britons were faced with charges of nearly 40 per cent.

And the publication further observed that typical rates are now at their highest since the latter part of 2006.

“The increases make a mockery of Gordon Brown’s claims that he would take steps to ensure credit card companies treated customers fairly,” it was stated.

This follows a recent survey conducted by Shelter, which found that an increasing number of people are using credit cards to pay off their mortgages, action that is being taken by one in 12 Londoners.