Credit card holders are being stung by their issuers, as comparison website Moneysupermarket reveal that the APR (annual percentage rate) has gone up on nearly a third of all credit cards in the past 12 months.
The main culprits who have upped the APR for their existing customers are Egg, Capital One, Lloyds TSB, MBNA and Barclaycard. Egg have upped the APR for 11% of their cardholders. More worryingly, 27% of cardholders were unaware whether their APR had increased on their credit cards, meaning that more need help to manage debt to ensure that their finances do not spiral out of control.
Head of credit cards at Moneysupermarket, Steve Willey said: “Firms writing to customers telling them their APR is about to increase will only exacerbate the debt problem in this country.. Increasing the interest on purchases will only make those rising food, fuel and mortgage bills harder to pay, and lengthen the time it takes people to clear their debts.”