Credit rates on the rise

AVERAGE credit card and personal loan rates are on the increase as households grapple with the rising cost of living, according to a financial information website.

Across the credit card market, the average purchase APR (annual percentage rate) in

June is 26.7%, Moneyfacts.co.uk said.

This is the highest rate since records started in June 2006 and includes card fees, the website added.

Several factors have contributed to the increase, including interest rate rises and the size of fees on new cards being launched, Moneyfacts said.

There has also been a spate of increases to the personal loan rates being offered.