The interest rate on credit card debt has increased by almost 2 percentage points this year. This is despite the fact that the key policy rate is zero and the mortgage rate is well below 2 percent.
Although mortgage rates, deposit rates, money market rates and the key policy rate have fallen sharply this year, the average interest rate on credit card use is up almost 2 percentage points, writes Finansavisen.
– “This is very surprising based on the development in the general interest rate level, and an indication that price formation in the market for consumer loans follows different patterns than for mortgages,” says head of department Elisabeth Realfsen in Finansportalen.
The interest rate on credit card debt has increased from an average interest rate of 18 percent in January to 19.73 percent in July.
For consumer loans, the average interest rate is now 14.3 percent. This is down half a percentage point from January.
So far this year, unsecured debt has fallen by 7 percent, according to figures from Norwegian Debt Information (Finans Norge) and the Debt Register (Evry).
© NTB Scanpix / #Norway Today