Fighting Higher Interest Rates
Interest rates for mortgages have lowered because the Bank of England has lowered their base rate so much. However, there is one product that does not seem to be following the base rate. Instead, credit cards are gaining higher interest rates despite the base rate of the Bank of England. In order to fight these current troubles with interest rates credit card holders are looking for better products. They are searching for deals with 0 per cent on balance transfers and purchases. They are also looking for rewards cards that will work for them in order to help make the higher interest rates more favourable for them.
It is estimated that 2.8 million cardholders are going to shift roughly 2.8 billion pounds onto new credit cards in 2011. About half of these credit cardholders will make this move in the first 3 months of 2011, at least according to Santander Credit Cards.
It is partly a sign that cardholders are looking to get their debt under control since most have an average debt of 1,015 to 2,290 pounds on the cards. Most of the individuals interviewed regarding how they are going to deal with debts stated they are still paying for Christmas 2009.
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