Credit card interest rates hit record high

Credit cards are a popular option among people wanting to borrow money - but it’s becoming an increasingly expensive one too.

New figures from Moneyfacts show that the average annual percentage rate (APR) on a credit card is now 35.8%.

That’s the highest amount since it began collecting records nearly 20 years ago.

And significantly, it’s almost ten times the current Bank of England base rate of 3.75%.

Having a credit card isn’t inherently bad if you can afford to keep up with repayments.

But if you’re struggling with money, relying on credit cards and being hit with a high APR, it can quickly become very costly.

What you can do if you’re worried about credit card debt

If you’re struggling to clear your credit card balance, there are steps you can take to stop the problem getting worse.

Check your spending patterns

Make sure you know exactly how much you have coming in and where it’s going.

Understanding your spending can highlight areas where you might be relying on credit and help you work out where you can free up cash and make savings.

Use our free budget planner to get started.

Pay more than the minimum

Even an extra £10–£20 a month can make a big difference in cutting down interest and reducing your balance faster. 

Look at balance transfer options

If you have significant credit card debt, moving it to a 0% balance transfer card can give you breathing space to pay down your debt without racking up more interest.

Ask for help early

If you’re worried about falling behind with payments, get in touch.

We can help you find a way forward that’s right for you.