Credit card costs soar by 23% as credit crunch bites

CONSUMERS are paying the price for the so-called credit crunch as credit card companies jack up their interest rates as high as 22.9%.

Half of the 16 top credit cards on the market are more expensive than they were a year ago, even though basic bank interest rates have only risen from 3.5% to 4% in that time.

Banks across the world are increasing the cost of their loans, mortgages and credit cards as a result of widespread financial losses after they lent money to US homebuyers who did not pay the money back.