The UK's biggest credit card provider yesterday confirmed it was raising its rates amid worries that increasing number of people would struggle to keep up with their debts.
Barclaycard said it was increasing its interest rates by between 1-2 per cent despite the Bank of England recently reducing base rates for the first time in two years.
The group has already seen a big increase in bad debt levels during the first half of this year, and it is worried the problem could get worse.
Its profits for the first-half dived by 17 per cent as bad debts soared by £104 million to £508 million.
The increase will kick in for the group's nine million customers on November 14.
