Credit card rates 'set to rise'

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The need for consumers to seek the best credit card deals may be set to increase, following the findings of a recent study into UK charges.

According to research conducted by PricewaterhouseCoopers PwC, credit card providers are set to up their interest rates and introduce annual fees.

The firm said current business models are "unsustainable" due to increasing bad debts, funding constraints and difficult trading conditions.

Large-scale change is "inevitable" in the sector within the next few years, PwC claimed, with charges for simply holding a card likely to become commonplace.

Richard Thompson, a partner at PwC, commented that bad debts have reached "historic highs" in the UK, meaning credit card providers have little option but to increase rates.

Insolvency practitioner Nick O'Reilly, a director at Vantis, recently claimed that credit has been too easy to access in the UK in recent years, leading to many of the present difficulties with debt.

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Tags: credit card providers , insolvency practitioner , best credit card deals , credit card deals , funding constraints , bad debts , richard thompson , vantis , o reilly , business models , interest rates , consumers ,

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2009-11-19 10:05:06 © Moneyextra.com