Millions of credit card holders feel the crunch as interest soars

Millions of credit card holders are being squeezed by the highest interest rates in more than a decade, according to new research.

Despite the Bank of England’s base rate being at 0.5 per cent, average credit card interest rates have risen to 18.8 per cent.

Experts said that card providers were passing on the cost of an increase in defaults caused by rising unemployment and bad debts. The charges were also a consequence of tighter Government regulation.

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