Consumer champion Martin Lewis has urged credit card holders to check if they can reduce their debt now ahead of a potential rise in interest rates.
The MoneySavingExpert says credit card deals could worsen if the Bank of England hikes interest rates for the seventh time in a row. The base rate went up by 0.5 percentage points to 1.75% last month. Money markets suggest the Bank could raise rates to 2.5% on Thursday, September 22, in what would be the biggest rise in 33 years.
Writing in the latest MoneySavingExpert newsletter, Martin explained how even though credit cards are not explicitly linked to the base rate, deals have been worsening over time. This is because if the cost of borrowing gets more expensive, banks will offer less competitive deals.
