Credit card debt 'needs to be carefully managed'

By Sarah Engle, Mon 9 Aug 2010 - Published in Credit Cards

It is important for people with credit card debt to keep a close eye on the amount of money they owe, it has been claimed.

Recent research published by moneysupermarket.com revealed that the interest applied to credit cards continues to rise despite firms launching a record number of promotions, with the average rate standing at 17.32 per cent.

Commenting on the findings, a Moneyfacts.co.uk spokeswoman pointed out that many financial services providers consider credit cards to be a high-risk product, hence the use of high interest rates.

"It is important for card holders to check that they can keep up repayments on their card in the event of a rate increase and to always try to make more than just the minimum monthly amount," she added.

The representative also noted that some cards are still offering a favourable rate of interest but recommended that consumers should consider if they can make their repayments over the long term before taking one out.

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