Credit cards Updated:
Consumers have been advised to consider finding a credit card with a low balance transfer rate if they experience an rise in interest.Ian Boden-Smyth, of the UK Insolvency Service, noted that borrowers may prefer to seek a new deal after Egg announced that its interest rates are being increased.Those who are unhappy with their rate may wish to carry out a credit card comparison before transferring.Mr Boden-Smyth described the trend of rising rates as "worrying", but explained: "It's always been a well known fact that credit cards and store cards are the most expensive forms of credit but they are the most profitable areas for the banks."And he observed that although Egg customers have previously viewed it as providing a good service, the firm is now attempting to reduce debts.The rise in rates was announced earlier this week, with Egg writing to customers to inform them that increases will be by up to five per cent, depending on individual circumstances.
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