Credit card companies are out of touch with their customers, and could be fuelling debt problems, according to consumer watchdog Which?’s report.
They found that 28 major credit card lenders had either raised charges or interest rates, or reduced the interest-free period on new purchases.
According to the organisation’s findings, the average interest rate on cards went up by 0.5%, despite the Bank of England reducing the base level of interest by 4.25% over the same period. Some rates saw increases of up to 3-4%.
The watchdog claimed that card firms were using “tricks” to generate extra revenue from customers, with moves that could increase customer’s credit card debts and cause debt problems for card users.
Editor of “Which? Money”, Martyn Hocking, commented: “At a time when we’re all feeling the pinch, it’s hugely disappointing that credit card companies are choosing to put the squeeze on borrowers more than ever.
“With interest rates so low, it is time for credit card providers to enter the real world.
“They need to make credit cheaper and their charges more transparent and fair, rather than making it harder than ever for people to make ends meet and pay back their debts.”
People who are struggling with their credit card debts can find relief from reputable companies, such as Chiltern, Hamilton Locke and The Debt People.
These organisations offer a number of professional debt solutions that can help to clear outstanding balances on all unsecured debts – such as personal loans, store cards, overdrafts, catalogues and credit card debts.
Some solutions could see all remaining balances on your unsecured debts written off after 5 years, along with all additional interest and charges being stopped.
For immediate advice on your situation, call the number at the top of this page – our advice is free and our debt solutions are tailored to your specific circumstances.
