February 16, 2010
Credit card interest rates have climbed to a 12-year high, leaving millions facing crippling repayments on their debts.
[efoods]Despite historically low Bank of England base rates, the average interest charged on a credit card has soared to 18.8 per cent – the highest level since 1998.
Some consumers now paying more than 40 per cent on the cash they have borrowed.
This means that credit card borrowers with a debt of £5,000 on their card – who make only the minimum repayment each month – will now repay an additional £2,289 over the life of the debt compared with what they would have paid four years ago.