Credit card interest rates reach 13-year high

Friday, 06 May 2011 10:05

Clearing debt makes more sense now than at any point in the past, according to Credit Action, which this week published its latest debt statistics for May 2011.

The organisation explains that credit card interest rates are rising - in spite of the fact that the Bank of England's Monetary Policy Committee yesterday held the base rate at 0.5 per cent for the 26th month in a row.

Credit Action associate director Joanna Parsley says: "Although the amount owed by every UK adult has fallen by approximately £30, in light of rising credit card interest rates ... paying down debt has never been more sensible advice."

She adds that credit card interest rates now average 19.1 per cent, the highest they have been in the past 13 years.

Clearing debt could not only help Britons to get their finances back into order; it could also cut down the amount they pay in interest.

Every day in the UK, the total amount charged in interest is currently £180 million, the Credit Action report notes.

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