Are you paying the highest interest rates in 30 years?Posted on Oct 13, 2023
Credit card interest rates are up again, with many now paying the highest interest rates in nearly 30 years!
If you have a credit card and don’t pay your statement balance in full each month, you could be paying the highest rates since 1995, according to Bank of England data. The average rate on credit cards hit 23.8% in September, up from 21.89% compared to the same month in 2022, and with variable interest rates many people are actually paying much more!
To make matters worse, cost of living pressures mean many households are using credit cards more. According to UK Finance, credit card transactions increased by 7% increase in June, compared to June 2022 and the total spend was 8.3% higher than a year ago.
With the average credit card interest rates continuing to rise and showing no signs of slowing down, some people are paying up to 27.7% interest! However, there are other options to help you borrow without paying over the odds, and Penny Post is here to help!
How Penny Post can help
Did you know a Penny Post loan could be a much cheaper alternative? From time to time we all need to borrow, and Penny Post is here to help. With rates from just 2.9% APR and cheaper than most credit cards, our straightforward loans are easy to apply for, with options for everyone! And … with save as you borrow, you’ll have a lump sum when you’ve repaid your loan too.
Save with a Swap & Save Loan
If you have balances on credit cards, our Swap & Save Loan offers an affordable way to shift your credit card debt and consolidate your borrowing. Tidy up your finances by choosing a lower interest rate.
Let’s assume that you have £5,000 on your credit card…
A £5,000 Penny Post Swap & Save Loan, repaid over 40 months will cost £153.97 a month, total amount repaid £6,158.81, at just 13.5% fixed APR.
Now let’s compare this to the average credit card interest rate, 23.8%.
Using Uswitch’s Credit Card Calculator and keeping month repayments at £153.97 (the same as Penny Post’s Swap & Save Loan), total interest is £2,598 with a total repayable amount of £7,598, and would take you 50 months to repay.
By opting to consolidate your debts with a Penny Post Swap & Save Loan you could save over £1,400 in interest and repay your loan 10 months quicker than your credit card! And remember, at Penny Post our APR is fixed, meaning the rate you see is the rate you get!
Want to borrow a different amount? Try our easy-to-use loan calculator to see how much you could save by applying for our Swap & Save loan and consolidating your debts.
Our Swap & Save Loan combines any of your personal debts into…
- One fixed regular payment – Our Swap & Save Loan means just one repayment each payday. Numerous payments, on different days to different lenders, can be a thing of the past!
- One interest rate –Make life simple and slash your repayments with one competitive, clear interest rate! Our loans have no hidden fees, and can clear your expensive bills with existing lenders into one manageable and affordable regular payment at just 13.7% APR.
- One clear end date – By consolidating your existing lending, we will pay your existing lenders directly and you will have a clear end date for your loan.
- We’ll do the legwork by paying your existing lenders directly. All that is left for you to do is close the account with them once the debt has been cleared.
Thanks to our Swap & Save Loan, we’re saving members over £6,500 every month! We’ve recently helped another member save £500 every month, by switching to a Swap & Save Loan.
Could we help you? If you’ve got outstanding debts with one or more existing lenders, we could help tidy up your finances into 1 manageable repayment and save you money!