Martin Lewis has issued an urgent warning to everyone with a credit card to check if they can cut their debt now ahead of an expected interest rate rise this week. Credit card deals could worsen if the Bank of England hikes interest rates for the seventh time in-a-row, according to the Money Saving Expert.
The base rate went up by 0.5 percentage points to 1.75% last month and money markets suggest the bank could raise rates to 2.5% as early as tomorrow (September 22) - the biggest rise in 33 years. Martin explained in the latest MoneySavingExpert newsletter that even though credit cards are not explicitly linked to the base rate, deals have been worsening over time.
This is because banks will offer less competitive deals if the cost of borrowing gets more expensive. Martin has therefore urged anyone who has credit card debt to check if they can save thousands of pounds now by applying for a balance transfer card.
