Credit Card rates still high despite cuts in official interest rates

Since the Reserve Banks repeated cuts to the official interest rate over the past few months, very few credit card providers have passed on any cuts in interest rates to credit card customers.

With the weakening economy causing high unemployment, share market losses and decreasing property values, it is expected that we will see yet another interest rate cut next month.

Whilst most of the big banks have passed on most of the interest rate cuts to mortgage holders, credit card customers have seen no easing in their rates. Some are still paying interest rates as high as 20 percent. This high interest credit card debt is doing nothing to help struggling consumers stay afloat in these troubled times. One thing consumers can do is to protect themselves against these high interest rates by switching their existing credit card to a new low rate credit card.