Many newspapers today have reiterated the fact that the average credit card interest rate on new purchases has crept higher and higher over the last few months and now stands at a massive 18% compared with base rates of 0.5%. While the UK government and UK regulators continue to attack the mortgage market and the investment market it appears, at least to consumers, that the credit card industry has escaped relatively unscathed.

Those who follow the credit card industry will know that the government recently forced through an extended period of reflection by credit card companies when considering customers who are in financial trouble. However, this in the eyes of many is doing nothing but delay the inevitable with many UK consumers falling further and further into debt. We are already seeing a significant increase in IVAs, bankruptcies and trust deeds in Scotland as more and more people feel the pinch and see no way out.

If you feel that your financial situation has worsened, or could worsen in the short term, you should take advice from the professionals sooner rather than later to protect yourself. Even in the worst situations you still have rights, you still have people you can talk to and thankfully in the short term you should have a prolonged period of reflection due to recent government regulatory changes. However, you need to use this prolonged period of reflection to your advantage and ensure that you take the right course of action for your situation.

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