Rising credit card rates increase debt risk

New research has shown that the average credit card purchase rate has been gradually rising over the past two years, despite a series of base rate cuts.

Moneyfacts.co.uk said that today`s average credit card purchase rate stands at 18.1%, up from 16.3% two years ago.

Michelle Slade, analyst at Moneyfacts.co.uk, commented: "The increase comes from a combination of card providers raising rates, withdrawing competitive deals and the launch of new cards onto the market with higher APRs than we previously may have seen."

A spokesperson for debt management company Gregory Pennington said: "Credit cards can be a useful way of making purchases if used correctly, but the debt can grow quickly if the balance is not paid off every month.

"Because the debt can grow so quickly, anyone struggling with credit card debt should make sure they speak to a professional debt adviser as soon as possible to discuss the best way to clear their debts."

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Gregory Pennington offer debt management plans as well as a range of other debt solutions. If you are worried about debt, contact one of our expert debt advisers now.