Credit card interest rates are likely to remain the same over the coming year, it has been predicted.
Peter Harrison, head of credit cards at price comparison website moneysupermarket, stated that rates will remain unchanged in 2009, despite the recent reduction in the base rate by the Bank of England.
And he also forecasted an increase in balance transfer fees, noting that he was “curious” to see where credit card firms will find the extra money to cover the cost of implementing the new code of practice barring them from selling personal payment insurance alongside credit cards.
“It’ll be very interesting to see how credit card providers will implement the new code … and whether they will still increase rates,” he remarked.
The predicted lack of a rates cut may be bad news for those struggling with credit card debt and hoping to get debt free in 2009.
MoneyExpert recently noted that many credit card customers are struggling to pay off their debts from last Christmas as they enter the current festive season.
By Tom Musk