Credit Card Rates Uk

How banks can get away with high interest rates on credit cards, when the interest rate the Bank of England is almost zero? If the Government of the United Kingdom banks to reduce their rates - or is it unfair on the edges?

The first answer is easy. They can get away because people will pay.

The second answer is a little confusing. The government does a favor by not cutting interest rates. Look at it this way - you are more likely to pass or not pass, knowing that your interest payment will be as high as your principal payment? If the government were to lower interest rates, people are becoming more and more deeply in Debt. You're in a credit crisis like the one that comes to destroy the housing markets in the United States. This is a direct consequence of the government forcing banks to lend at low rates.