Cost of credit card borrowing 'is rising'
Published On 14 April 2008
The cost of owing money on a credit card has increased dramatically in the last six months, new research has shown.Data released by MoneyExpert.com showed that the typical standard APR on credit card purchases has increased from 16.56 per cent to 17.12 per cent over the last six months.
Balance transfer rates have also jumped from 15.12 per cent to 15.95 per cent.
According to the firm, credit card lenders are looking to clampdown on problem borrowers and so are also cutting credit limits and refusing new applications.
"Everyone is finding it more difficult to make ends meet as the cost of living rises. People will want to turn to credit and that means splashing the cash on the plastic," explained Sean Gardner of MoneyExpert.com.
"Most of us would normally seek out a new zero per cent deal to tide us over the bad times, but with lenders playing a cautious game getting one of those cards is more difficult than it used to be. You'll need to convince the card company that you can afford to repay your debts."
Data released by Sainsbury's Finance earlier this month showed that consumers transfer over £1 billion every month between credit cards.
