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When will credit card interest rates begin to fall?

Slowly but surely we have seen credit card interest rates continue to rise throughout 2009 despite the fact that UK base rates remain stuck at 0.5%. This comes at a time when more and more people are struggling to repay their debts, with credit card debt amongst the most expensive. In what many believe is a situation made worse by the credit card companies, increased credit card interest rates have led to increased minimum payments and place more and more pressure on customers.

Credit card companies have then used the growing number of defaults to push rates higher in the short term thereby instigating something of a self fulfilling prophecy. At some point we will see this particular seesaw tip back in favour of UK consumers but at the moment there is no sign of a major reduction in credit card interest rates. As a consequence, more and more disposable income will be eaten up by debt repayments for more people in the UK causing more financial heartache in 2010 and possibly beyond.

If you are falling into financial difficulties it is vital that you take professional advice as soon as the situation begins to move out of control. Creditors will appreciate early notice of your problems and are likely to be of more assistance when looking to try and resolve your issues.

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