- Wednesday, 13 January 2010IVA solutions could be needed by UK consumers hit by rising credit card interest rates.
Bank of England statistics reveal that average credit card interest rose from 15.89 per cent to 16.28 per cent in December, reports the Daily Mail.
It brings the figure to its highest in four years, despite the Bank of England holding the base rate at a record low of 0.5 per cent.
An estimated nine million people relied on their credit cards to fund Christmas, with rising interest rates making repaying debts increasingly difficult for many as a result, the newspaper reports.
The Daily Mail also referred to a recent PricewaterhouseCoopers study, which predicted the total amount of bad debt on credit cards will see a 50 per cent increase by the end of 2010, reaching almost £5 billion.
"Credit will become more expensive as lenders attempt to claw back revenue lost as a result of economic and regulatory pressures," the newspaper quoted the study as stating.
New research from housing charity Shelter reveals that more than one million people in the UK are using credit cards to pay their mortgages or rent.
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