Over a two year period UK borrowers have faced rising costs from credit card companies a report has revelled. Credit card companies have increased the number of fees/charges they can apply to the customers account.

An industry expert has commented from April 2006 to present the average purchase rate for credit cards has risen by a whopping 1.5%. Back in April 2006 the average rate was 14.9% compared to present figures showing 16.4% as the average.

Those borrowers able to clear their cards each month will not have felt the increase, but those already on a tight budget will be facing further struggles. 

According to an industry official the average interest rate for cash transactions have seen a marked increase from 18.1% to 24.3%. On top of this, the majority of institutions have increased cash advance charges. Previously the majority charged 2%, with a minimum of £2, now the majority charge 3%, with a minimum of £3.’

With this in mind those taking out a credit card with the intention of repaying the minimum monthly amount could be paying their purchases off for a very long time, in some cases this has been up to 30 years for a debt of £5000.