Consumers should calculate credit costs
3rd June 2008
As household bills soar and petrol prices reach all-time highs, an increasing number of consumers are clutching at credit, but could find themselves in more debt.
That is the warning issued by Moneyfacts, whose latest research reveals that tough credit conditions are being passed on to the consumer who is forced to pay over the odds.
Moneyfacts uncovered 22 purchase rate increases, 15 cash rate increases and over 30 increases to fees including balance transfers and cash withdrawals.
A spokesperson for Moneyfacts said: "The number of increases to purchase APRs is quite phenomenal. Normally credit card providers avoid such increases as these are the rates customers see first."
The financial advice service has said that anyone with "less than perfect credit history" will be left struggling to find a good deal.
Consumers that are looking to get a new credit card should, according to Moneyfacts, first think about how they will use it.
Those with existing debt should look for a zero per cent balance transfer deal, whilst consumers looking to make purchases on their card should seek out a zero per cent introductory purchase deal.