Property News · February 14, 2015

The great credit card rip off


While the Bank of England base rate has been stuck on 0.5% for five years, the interest charged on card balances has shot up to nearly 19%Are you being ripped off by your credit card company? Figures from the Bank of England this week reveal that far from cutting interest rates to customers since the base rate fell to 0.5%, the banks have hiked the rates that millions of customers pay – in some cases by as much as a quarter.When the financial crisis struck in 2008, the average credit card customer was paying interest of around 15.5%, while mortgage borrowers were paying around 6% for a two-year fixed-rate deal. Seven years on, new mortgage customers are paying around 2%, but the rates charged on credit cards have headed in the other direction, and now average 17.8% – or nearly 36 times the base rate charged by the Bank of England. Continue reading…

Source : theguardian.com
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