- Monday, 22 February 2010Consumers need to take responsibility and seek to manage their debts themselves, according to one industry expert.
Credit card interest rates have hit an all time high of 18.8 per cent, prompting personal finance expert Ros Altmann to state that there may be reason to install a central watchdog to supervise rates.
However director of Credit Action Chris Tapp said consumers should be looked after to some extent, but the ultimate responsibility should still remain with the customer.
"Nobody is forcing consumers to pay more than they must. Given the greater cost, there is some concern that debt is more expensive and there will be less of it - personally I don’t see how that is a bad thing," he said.
"The companies should be able to charge whatever they like. If credit cards are not competitive, then people should refuse to use the product."
Increased information surrounding credit card debt is aimed at helping people make better decisions about their finances, said Mr Tapp, adding that one of the "silver linings" of a recession is that people take notice of how they manage their money.
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