Credit Card Interst Rates

[Anonymous]

Yesterday i got a letter form my bank to say that they are increasing my purchase interest rate to 15.2% Variable APR form December?

At the moment im paying 0.95% per month (11.4 APR).

This seems to be a big increase. No reason given as to why.

How does it ccompare to other credit card interest rates?

Really would love to get rid of the credit card complitely but its hard to live without one if you are buying stuff on the internet or booking hotels & holidays etc.

[Taylor5]

I dont know what my rate is but i pay my bill off every month so i dont pay any interest.
Some of the companies do great rates for new customers, maybe worth switching who you cc is with

[Financial Companion]

That’s actually not the worst rate out there Mary, many APRs are in the 18-21% range!

As Taylor said, there is no interest if you clear in full each month but that’s not an option for everyone. In terms of having a card for things like online purchases, Visa Debit cards are a good way. You could also consider the pre-paid type of card like the o2 one that you top up yourself.

One other thing worth mentioning, I spoke to someone recently that had a credit card bill of a few thousand euro but they were also saving €200 per month. As the interest on their savings was only about 2% after dirt, it made far more sense to add the €200 to clearing the debt with the much higher interest rate! When paying down short term debt, the higher interest rates should be paid first to get the best value. Hope that helps.

Dave.

[MaryE]

Thanks for replies.

I feel a bit better now knowing that its not too high.

Paying it all off each month is not an option at present nor is saving anything, lol, but then again as my mother keeps telling me, i know how to enjoy myself, so maybe if i cut down on that i could actually save something but sure life is just damn short 😆 😆

[Author]

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