Debt advice news: Rise in interest could 'push people over the edge'

14/01/2010

The rise in credit card interest could be enough to "push some people over the edge", a financial education charity has suggested.

Credit card interest rates were revealed by the Bank of England to have risen from 15.89 per cent in November 2009 to 16.26 in December of the same year.

While encouraging people not to "exaggerate the impact" of the rise, the director of Credit Action, Chris Tapp acknowledged that it "was not good news".

He added that the charity hoped that the credit crunch would mean that "the damage that can be done when people borrow more than they can afford would sink in and we would see something of a shift in people's attitude to credit".

But said: "As yet, there has not been conclusive evidence unfortunately that that has been the case."

Personal debt in the UK at the end of November 2009 was at £1,459 billion according to the charity.

Tags; Current UK Economy,

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