While credit cards can be a good way to help you out in the short term with respect to your finances, there is no getting away from the fact that they are not suitable for long term debt. Sadly, a lot of people have serious credit card debt and this is impacting on their ability to manage their finances or move out of debt.

The fact that credit card rates have been seen to be increasing in recent years is very worrying because this will cause even more problems for people looking to take control of their finances. When credit card rates increase, people will find it more difficult to pay their debt off, and this can cause considerable problems in the long term.

Back in March of 2009, the average credit card came with a purchase rate of 17.7%. However, nowadays, this figure now stands at 22.3% and this is at a high level. When you compare the rates with credit cards to the rates with small loans and mortgages, it is a great concern. This is because the interest rates on these products have fallen to the lowest level which makes the rise in credit card rates even more galling.

Have you seen credit card rates increase?

Something else which makes this situation even more galling comes with the fact that core interest rates are at a low level of 0.25%. This is a drop from the 0.5% level which was a seven year low. There has also been a warning from the Bank of England Governor Mark Carney that banks have to pass on the savings to their customers. The reaction of banks in helping people in recent years has been extremely poor and it is no shock or surprise to learn that many people are feeling disenchanted with the behaviour of banks in the modern day.

There is no getting away from the fact that debt can have a very negative impact on people’s lives but not everyone sees all debt as being equal. Many people have considered credit card debt to be a lesser debt than other debts but this definitely isn’t the case. There is a need for people to be aware that credit card can have a hugely negative impact on their life, and leave them scrambling for financial support.

If you have seen credit card rates increase, you’ll want to consider your options and think about how you can transform your finances for the better.