It has been revealed that the interest rates on credit cards are continuing to rise, despite the Bank of England’s base rate dropping to an all-time low.

The investigation by a financial company displayed rates have increased by over 2% points to more than 18% in the last two years. In the same time zone, the base has plummeted from 5.5% to 0.5%.

The site also found that in the past 24 months, lenders have withdrawn a variety of competitive packages and replaced them with higher APR products, meaning borrowers could face further debt woes.

Michelle Slade, an analyst from the site, said that the financial downturn in the UK is the primary factor behind the rise in credit card charges.

She commented: “Rising unemployment means that the risk of customers defaulting on their card repayments has increased, which is being passed on through higher rates.

“If customers are struggling with repayments, unsecured lending is one of the first casualties as customers fight to keep hold of their property.”