Interest rates of 18.8% hit UK consumers
A new report has found that average credit-card interest rates
in the United Kingdom have risen to 18.8%, despite the fact that
the Bank of England's base rate stands at only 0.5%. The report in
The Times, which uses research from Moneyfacts, should come as a
wake-up call to the millions of UK customers that continue to use
credit cards on a regular basis.
Many consumers choose to use credit cards to shop online in order
to add greater security to their purchases, while others routinely
use credit cards as part of their monthly spending.
Alternative payment method Ukash, which allows consumers to shop
safely online using cash, is advising credit card users to be aware
of these rises in interest on credit card purchases, recommending
that people consider new ways to shop online.
Mark Chirnside, chief executive officer Ukash, explained, "Over
the last 15 months the effects of the recession have been very hard
on a lot of consumers and this report showing that interest rates
on credit cards are at their highest since 1999 comes as a further
blow to shoppers.
"There are now a range of alternative payment options that
shoppers should be considering as they look to avoid hefty charges
and at Ukash we have been working to make online shopping with cash
a safe, secure and accessible option for shoppers.
"In fact, we are developing our product range and in the coming
months we will be launching a service that allows Ukash customers
to shop online using cash anywhere credit cards are accepted, which
will mean they can continue to shop at their favourite outlets
without running up debt."
For more information visit www.ukash.com