[ad_1]
UK shoppers are being hit with eye-watering credit card rates as the average APR rockets to 35.8% – the highest in at least 20 years.
For many, carrying debt has become a financial nightmare. Experts warn that if you don’t pay off your balance fast, interest charges could spiral out of control. Some borrowers may need to shop around or transfer balances to 0% cards to stay afloat.
“With rates at this level, every purchase costs more than ever,” said a consumer finance analyst. “It’s a wake-up call for anyone relying on credit cards.”
The surge comes amid rising borrowing costs and a tougher financial climate, hitting households already struggling with inflation and living costs.
Brits are being urged to check their cards, cut unnecessary spending, and pay down debts before the interest shock gets worse.
Rachel Springall, a finance expert at Moneyfactscompare.co.uk, said, “The latest statistics from UK Finance reveal around half of credit card holders are now incurring interest charges, and while some might only owe a few hundred pounds, there will be others with significantly more debt that needs to be paid back.
“Luckily, there are some lengthy interest-free balance transfer cards to choose from, with TSB leading the market with a 38-month term, which charges a transfer fee of 3.49%.
“Reviewing card statements regularly is vital to stay on top of debts, but it’s also wise to make a calendar note of when any balances will incur interest.
“Shifting debts around is handy to grab interest-free offers, but the debt will hang overhead if only the minimum repayments are made each month.”
She added, “Consumer behaviour continues to change, many now use their digital wallet to make payments, such as with a smart phone or watch.
“It is then essential for consumers to keep on top of their transactions, such as setting up notifications each time they spend from their bank, or checking their online statements each week.”
[ad_2]
Source link
