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'Consider switching' to avoid high credit card rat

'Consider switching' to avoid high credit card rat

Category: Credit cards

Updated: 12/02/2009
First Published: 11/02/2009

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

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.

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

 
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