Credit card users benefitting from low interest rates

By Sarah Engle, Tue 10 Jan 2012 - Published in Credit Cards

Many Brits are turning to credit cards as a financial solution due to a number of low interest rates.

Savers had been advised last month to shop around for the best deal on cards and look out for companies offering zero per cent interest on their schemes. The base rate of interest being held at a current record low of 0.5 per cent by the Bank of England with advisers saying there is no better time to switch to credit cards.

The Post Office's annual Consumer Credit Report found that over 12 million people will spend the first month of 2012 relying on credit cards to help pay for bills and living costs. The figure is a two per cent rise on the same period in 2011 with 38 per cent of Brits increasing their credit card spending by Ł200.

Bernard Clarke, communications manager at the Council of Mortgage Lenders, told Vanquis: "The likelihood [is] that interest rates will remain at low levels for the foreseeable future. Any rise is likely to be modest and that the increases are likely to be relatively slow."

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