Card cost rise ‘an insolvency threat’

The level of insolvency in the UK could increase if the cost of having credit cards rises, it has been suggested.

Managing director of the Debt Advice Foundation David Rodgers said the situation could change the fortunes of those who currently like to change their cards to cheaper deals.

It would mean “those people who are currently credit card hopping from one zero interest deal to another are suddenly faced with interest payments increasing the amount of their debt”, he explained.

Those keen to bring their debts down may wish to search for zero interest cards to switch their balances to while they are still available.

Mr Rodgers made his comments after PricewaterhouseCoopers claimed the cost of having credit cards will rise in the next few years in response to a continued increase in consumer debt.

As well as charging more interest, lenders will also charge annual fees, it predicted.

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