There are ways out of credit card debt, no matter how serious. It is important that people concerned about their level of borrowing seek professional advice so they can find out how they can achieve credit card debt reduction.
(PRWEB) July 9, 2006
Only weeks after several major credit card providers had announced they were lowering their penalty charges, one of those companies, Barclaycard, have officially informed customers that they are increasing their interest fees. In light of this, debt help experts The Debt Counsellors are urging consumers to prioritise credit card debt reduction.
Barclaycard, along with Lloyds TSB and HSBC, cut their penalty fees from £20 to £12 in response to a ruling by the Office of Fair Trading (OFT) that the charges had been set "significantly higher" than was legally fair.
The OFT also estimated that credit card holders have been overcharged by £300 million a year in penalties.
However, Barclaycard have now written to customers to inform them that from 1st August approximately 10% of them will see their APR go up by 2-5% and that the charge for cash advances has increased from 21.9% to 27.9%. What's more, the increase applies to existing cash balances as well as new transactions.
Debt help organisation The Debt Counsellors says the only way to combat this kind of rate increase is credit card debt reduction.
Senior counsellor John Porter said: "Credit card debt really is a no-win situation for the consumer and a win-win situation for the credit card companies.
"The announced increases from Barclaycard show that while the credit card providers might comply with OFT recommendations, credit card debt is still an expensive situation, so credit card debt reduction should become a priority for everyone who owes money on their plastic."
Porter adds: "There are ways out of credit card debt, no matter how serious. It is important that people concerned about their level of borrowing seek professional advice so they can find out how they can achieve credit card debt reduction."
For more on credit card debt reduction, visit http://www.debtcounsellors.co.uk