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Credit card users 'should be sensible'

Credit card users 'should be sensible'

Category: Credit cards

Updated: 06/02/2009
First Published: 06/02/2009

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 It is now over 6 months old so the content may be out of date.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 urged to be "very sensible" when making payments using credit cards.

Following news that Capital One is increasing rates by up to 14 per cent, Credit Action suggested that this is to be expected in today's climate.

The charity's Frances Walker explained that such forms of finance are not necessarily linked to the base rate and therefore may not be affected by its reductions.

And with interest rates on cards becoming more expensive, she advised borrowers to pay off their balance in full each month.

"Credit is just becoming more expensive and we have just got to accept that, and consumers have to be sensible about it," said Ms Walker.

Those who are hoping to avoid high rates may wish to carry out a credit card comparison to find the best deal.

Research by Abbey has revealed that 56 per cent of Britons funded purchases with a credit card over Christmas, with the average amount spent being over £360.

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 Any products featured may be withdrawn by their provider or changed at any time.

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