Credit card debts threaten future

Business Secretary, Lord Mandelson, and the Consumer Affairs Minister, Gareth Thomas, have both warned that credit card giants must end their rip-off interest rates which have actually increased over the last few months, as a recent study indicates a change from 16.8 percent to 17.2 percent.

The problem is that credit card interest rates have not fallen, despite the fact that interest rates have fallen, so its is obvious and understandable that both consumers and the government are angry.

Mandelson and Thomas have vowed to challenge the companies involved so that they reduce the cost of borrowing on credit cards and call for an end to the hands-on tactics that are used on customers who are unable to repay back loans.

There have been very tragic cases whereby due to the heavy handed nature of debt collectors working on behalf of credit card companies, consumers have resulted in taking their own lives in order to free themselves form the burden of debt.

Prime Minister Gordon Brown has only recently announced his plans to get tough on the credit card industry and aim for increased regulation, as there is too much evidence highlighting the practice of card lenders increasing rates and making maximum returns on the money they have lent.

It is hoped that the government will agree to a set of fair principles in order to help borrowers.

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