Overview
- Nearly half of credit card balances are now charged interest, with the share incurring interest at 47.8% according to UK Finance.
- Outstanding card balances have risen about 8.5% year on year, indicating heavier reliance on borrowing.
- Financial advisers caution that high rates and rising balances can shrink borrowing capacity or derail mortgage applications as lenders assess balances, minimum payments, and utilisation.
- Consumers carrying debt face higher costs, prompting guidance to repay faster or consider moving balances to introductory 0% interest cards where eligible.
- Moneyfactscompare.co.uk highlights TSB’s 38‑month balance‑transfer offer with a 3.49% fee, alongside advice to check credit reports, set payment reminders, and monitor transactions closely.