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Credit card rates 'hiked for holiday season'

Credit card rates 'hiked for holiday season'

• Pay off those credit cards with a remortgage or loan

 

Holidaymakers about to jet off to warmer climes may find that their charges for using debit or credit cards have increased.

Credit card company MBNA, a US operation which runs seven million cards currently in circulation, is responsible for some of the rises, the Mail on Sunday reports.

Consumers could face annual percentage rates of up to 34.9 per cent for using these facilities, the paper warns.

Personal finance expert from Moneyfacts.co.uk Michelle Slade described the hikes as "phenomenal".

"Normally card providers avoid such increases as these are the rates customers see first," she said.

Ms Slade added that many families will be using their credit cards to fund their summer holiday this year as finances become even more stretched.

To add more bad news a report from PricewaterhouseCoopers has predicted that credit card companies could soon impose annual fees as they struggle to make a profit on their operations, the Edinburgh Evening News reports.

Your home may be repossessed if you do not keep up repayments on your mortgage.

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