Credit card customers sent urgent warning – check | U.Ok.Finance News
Millions of people with a credit card are being urged to check their accounts amid fears that lenders are rising their rates of interest. According to the Sun, some suppliers have hiked their rates of interest by as a lot as 12 share factors since 2015.According to analysis offered by TotallyMoney, the average credit card consultant APR was 17.9% in 2015. But this rose to 25.2% by 2025, representing an eye-watering increase of 7.3%. Alastair Douglas, chief government of TotallyMoney, mentioned: “While the Bank of England may have cut rates by one percentage point in the last year, credit card companies haven’t followed.”These hikes are a well timed reminder for credit card customers to review their charges and discover whether or not switching to a cheaper deal might save them money.”According to the research, the average customer would now be paying an extra £73 in interest for every £1,000 borrowed over a 12-month period.Some lenders have hiked their interest rates way beyond the average, with John Lewis having raised its credit card APR by 12 percentage points from 16.9% to 28.9% in that time period.M&S Bank has raised theirs by eight percentage points whilst lenders such as Bank of Scotland, Lloyds Bank, Nationwide, and TSB have all increased their rate by seven percentage points, climbing from 17.9% in 2015 to 24.9% by 2025.Experts warn that spenders should make an effort to monitor how they much they spend on their credit card and ensure that if using it for everyday purchases or rewards, that the balance is paid in full.Those unable to pay the balance off in full, should seek to move their debt to a low interest of 0% interest credit card to ease the burden.Martyn James, consumer rights expert, told the Sun: “For people contemplating transferring their debt for an curiosity-free deal with one other credit card supplier, there are three issues to consider: the curiosity-free period, the switch payment and the APR if you cannot repay the debt in time.””But those that make cautious use of curiosity-free offers can comfortably clear all their debt rapidly and with out the additional value of curiosity.”He added: “Balance transfers offers are getting longer.”You can now shift your credit card debt and cut interest costs for 33 months, taking you through to February 2028.”
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