Consumer group Which? has lambasted the credit card industry for upping interest rates over the past year.
Most major credit card companies have either put up interest rates in the last year or have found other ways to get money from customers, according to a consumer watchdog.
Research by Which? found that 28 providers had either increased rates, decreased the number of days consumers have to pay debt or lowered the number of interest-free days. The providers involved include members of the part-nationalised institutions Lloyds Banking Group and RBS.
The average interest rate has increased by 0.5 percent in the last 12 months, but RBS, Mint and NatWest have upped rates by four percent, while rates from Abbey and the Post Office have risen by three percent. Other banks have increased balance transfer fees, while some have raised cash withdrawal charges.
Which? Money editor Martyn Hocking said the findings were particularly shocking given the historically-low Bank of England base rate. The rate is currently at 0.5 percent, having been reduced dramatically over recent months.
"At a time when we're all feeling the pinch, it's hugely disappointing that credit card companies are choosing to put the squeeze on borrowers more than ever," he said.
"With interest rates so low, it is time for credit card providers to enter the real world. They need to make credit cheaper and their charges more transparent and fair, rather than making it harder than ever for people to make ends meet and pay back their debts."
