Saving Savvy

The Home Of The Savvy Savers



Savings

May 20, 2011

Credit Card Rates Fly High In First Half Of 2011

More articles by »
Written by: admin

Credit card rates have risen during the first months of this year and increases of up to two per cent have been discovered by research from comparison site Moneyfacts.co.uk. The organisation revealed that since the start of 2011, 18 credit cards have had rate increases – a big difference from the four registered as rising in the same period during 2010.

What’s more, many of the more recognisable stars of the high street have been part of this movement; Barclaycard, Santander, Halifax and Royal Bank of Scotland have all gone this route with their offerings and more of the same has been shortlisted by the study. The raft of increases means that the average interest rate now stands at 19.1 per cent – the highest level registered in the last 13 years.

However, the shift is not without its reasons, it seems. Moneyfacts.co.uk was quick to stress how card providers were forced to change to a new system, where repayments pay off the most expensive debts first and effectively curb their revenue. Additionally, a Payment Protection Insurance ruling could force providers to pay back billions to compensate people who were mis-sold such policies.

“It is unlikely we have seen the last of the increases and Moneyfacts expects more providers to follow suit,” said leading analyst Michelle Slade. “Providers hope to bank on customers’ reluctance to keep switching and can claw back the lost interest during intro periods once they end. In an ideal world, customers should look to repay their balance in full each month; that way no interest is payable.”


About the Author

admin





 
 

 

Don’t let hearing problems hold you back

Tweet Hearing loss affects more people than you might think – charity group Action on Hearing Loss suggests that over ten million people in the UK suffer from some kind of hearing loss – representing around one in s...
by admin
0

 
 

Achieve your goals on a budget

Tweet The new year brings with it the hope – and pressure – of becoming a new you. You may want to better your style, your career and your life in general, but how do you go about it when money’s tight after t...
by admin
0

 
 

How to save using voucher codes

Tweet You may have heard of your friends and relatives boasting of huge savings on everyday items using sites such as Groupon, but for the uninitiated, just how do you sort out the great opportunities from the rest using vouche...
by admin
0

 

 

Choosing economy in your next car

Tweet What do you want from a car? In an ideal world, you might plump for one of James Bond’s many vehicles, complete with all the Q-branch gadgets you could ever want. But in reality, in the current climate you’re ...
by admin
0

 
 

Taking care of your pet in the winter

Tweet Many pets enjoy the snow, but some are not as well prepared for the colder weather as their big, thick coats would have you believe. If you own a cat or dog which enjoys the outdoors, rising vet and insurance costs mean t...
by admin
0

 
 

Dealing with hearing loss

Tweet Hearing loss affects more than ten million people in the UK, according to charity group Action on Hearing Loss, which is more than one in six of the population. By 2015, this figure is set to reach 14.5 million, it predic...
by admin
0

 




0 Comments


Be the first to comment!


Leave a Reply

Your email address will not be published. Required fields are marked *


*