Interest rate on credit cards 'has been creeping up'

Some credit cards now charge a 20 per cent interest rate, one industry expert has noted.

The interest rate on credit cards has been increasing over recent months with the majority now charging around 20 per cent.

This is according to Paul Clitheroe, writing for the Sunshine Coast Daily.

He noted that it is easy to put a large purchase - such as a TV or holiday - on a credit card, although personal loans could be a better way of doing this.

One of the reasons people may use Aussie credit instead of personal loans is because of the convenience factor, Mr Clitheroe added.

The latter take more time to organise and so there is more time to think about whether a potential purchase is really necessary or affordable.

People may then choose not to buy it and thus save money.

Earlier this month, Mr Clitheroe - writing in the same publication - advised people that the start of the financial year is the best time to check their credit cards and start thinking about making savings.

By Joe Letts