Credit card debt 'could rise further'

10/02/2010

Thousands of people with credit card debt could soon need debt help as the interest rates on their cards look set to rise.

Capital One has announced that its credit card customers will see the interest rate on their debt jump by as much as 7.5 per cent.

The move means that interest on outstanding balances will jump from 8.01 per cent to 15.31 per cent, possibly adding hundreds to customer's repayments.

A spokesperson for the company said that they are "increasing interest rates for only a small percentage of customers across our range of cards" but are yet to specify who it will affect.

Capital One is not the first credit card company to announce such hikes in interest rates as last month a number of providers, including the Royal Bank of Scotland, announced similar rises.

The UK Cards Association has estimated that 6.4 million credit card customers saw their interest rates increase between January and October last year.

Posted by Jim Mead

Tags; Debt Management and Banking,

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