Credit card companies are hitting Brits hard by adding hidden charges and increasing rates despite us being in an all-time low rate environment.

According to a study by Which?, lenders such as NatWest, Mint and the Royal Bank of Scotland have all raised interest rates by as much as 4% over the last year in the face of an industry average of just 0.5%.

Which? also says some of the major providers are resorting to tactics such as cutting down on interest-free days and increasing withdrawal and balance transfer fees.

Which? money editor Martyn Hocking, says: "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.

"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."

Liberal Democrat Treasury spokesperson, Lord Oakeshott says: "The new bosses at RBS are fast learners in the Fred Goodwin school of greed: these taxpayer-owned banks must stop spanking their credit card customers. Paying these extortionate interest rates in the high teens destroys your financial health just like 50 cigarettes a day or 50 drinks a week."

These findings by Which? just highlight how unfair and expensive unsecured credit card debt is. If you think you are paying over the odds for your unsecured debt, maybe now is time to consolidate the debt and get rid of it for good.

SOURCE: Lib Dems, 22/04/09

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