Interest Rates on the up

zathrasB5

Just a general rant.  I think on the last money show Martin mentioned something about not expecting Credit Card interest rates to go up too much as they were already so high.  Should have told Sainsburys Bank about that.  They have twice now increased their credit card rate so the latest is 22% to 25%.  As Martin always says, make sure you clear the credit card each month!

kaMelo

zathrasB5 said:

Just a general rant.  I think on the last money show Martin mentioned something about not expecting Credit Card interest rates to go up too much as they were already so high.  Should have told Sainsburys Bank about that.  They have twice now increased their credit card rate so the latest is 22% to 25%.  As Martin always says, make sure you clear the credit card each month!

To be fair, 22% or 25% is neither here nor there. It's like being stuck in a hole, whether it's 22 feet deep or 25 feet deep makes no difference, if you don't have a ladder you can't get out of it.

MorningcoffeeIV

zathrasB5 said:

Martin mentioned something about not expecting Credit Card interest rates to go up too much as they were already so high.  

That's a fine theory, if you believe everyone still has lots of money and that the risk of non-payment hasn't gone up.

Ebe_Scrooge

MorningcoffeeIV said:

zathrasB5 said:

Martin mentioned something about not expecting Credit Card interest rates to go up too much as they were already so high.  

That's a fine theory, if you believe everyone still has lots of money and that the risk of non-payment hasn't gone up.

It's not really a case of having lots of money - just a case of being disciplined enough to not spend what you don't have.  Doesn't matter if you earn £5000 a year or £50 million a year - live within your means.  Spend more than you earn (whether on credit card or not) and there's only one possible outcome.

cymruchris

Other cards have also gone up - I have a Zopa card that was 14.9% - and has recently had its second interest rate rise to 17.15%. I've also noted some cards that were a certain APR have also gone higher when you do the blanket comparison searches for credit card eligibility within apps such as credit karma. It's a sign of the times sadly, and until BOE interest rates come down again, and the economy stabilises - I can see the rises will be here for quite some time yet. 

Ebe_Scrooge

zathrasB5 said:

As Martin always says, make sure you clear the credit card each month!

And this has always been the case, since time immemorial.

I apologise if my earlier comment caused offence to anyone, that really is not my intention.  And yes, with interest rates in general on the rise, it's inevitable that all lenders will increase their rates to match.  Hopefully, savers are starting to see the increases trickle down to them as well!

But for anyone who is not in a position to repay their credit card in full every month (which I do realise, sadly, applies to many people), please speak to one of the respected charities such as StepChange or Citizen's Advice.  If you're relying on credit to pay for essentials such as food and heating, that is simply not sustainable.  If you're using your credit card to buy new TVs and IPhones and struggle to pay it off, then I'm sorry, I have no sympathy - but if you're genuinely unable to pay for essentials then there is plenty of help available.  Please don't be too proud to ask for help when it's genuinely needed.

MalMonroe

Hi, Martin does also say that he wishes he had a crystal ball. He's good but he's no oracle. I have a Sainsbury's credit card and I do clear the balance every month, it's the only way to avoid any charges unless it's a 0% balance transfer card. (I haven't always been in a position to clear the balance monthly, so I do feel your pain).

Would it be possible for you to apply for a 0% balance transfer card so you can dispense with any interest? Just a thought as I know it's not quite as easy as it used to be. 

MrFrugalFever

cymruchris said:

Other cards have also gone up - I have a Zopa card that was 14.9% - and has recently had its second interest rate rise to 17.15%. I've also noted some cards that were a certain APR have also gone higher when you do the blanket comparison searches for credit card eligibility within apps such as credit karma. It's a sign of the times sadly, and until BOE interest rates come down again, and the economy stabilises - I can see the rises will be here for quite some time yet. 

That’s interesting as my Zopa was 14.9% and now just 15.40%, not that I pay any interest but odd that yours is different!

cymruchris

MrFrugalFever said:

cymruchris said:

Other cards have also gone up - I have a Zopa card that was 14.9% - and has recently had its second interest rate rise to 17.15%. I've also noted some cards that were a certain APR have also gone higher when you do the blanket comparison searches for credit card eligibility within apps such as credit karma. It's a sign of the times sadly, and until BOE interest rates come down again, and the economy stabilises - I can see the rises will be here for quite some time yet. 

That’s interesting as my Zopa was 14.9% and now just 15.40%, not that I pay any interest but odd that yours is different!

Possibly billing cycles - it's only just gone up from 15.4%.

MrFrugalFever

cymruchris said:

MrFrugalFever said:

cymruchris said:

Other cards have also gone up - I have a Zopa card that was 14.9% - and has recently had its second interest rate rise to 17.15%. I've also noted some cards that were a certain APR have also gone higher when you do the blanket comparison searches for credit card eligibility within apps such as credit karma. It's a sign of the times sadly, and until BOE interest rates come down again, and the economy stabilises - I can see the rises will be here for quite some time yet. 

That’s interesting as my Zopa was 14.9% and now just 15.40%, not that I pay any interest but odd that yours is different!

Possibly billing cycles - it's only just gone up from 15.4%.

I shall await my increase then lol

martinbainbridge1975

as above be disciplined with spending and make sure you if you cant clear that the card is an all round card with 0 per cent on purchases