New credit card rules 'should benefit consumers'

New credit card rules, which are expected to come into force at the start of next year, should offer benefits to a number of consumers.

That is according to Defaqto's insight analyst for banking Kevin Bray, who believes that payment allocation changes might prove to be quite positive for some people who are in credit card debt.

He commented: "From January 2011, providers must allocate payments to the transactions attracting the highest rate of interest and this is expected to collectively save consumers between £300 million [and] £500 million."

However, Mr Bray's comments follow the publication of new Defaqto figures which may offer less positive news for those considering applying for unsecured personal loans in the near future.

The firm suggests that the average loan interest rate has risen by 4.1 per cent over the course of the last three years.

Earlier this month, the firm also pointed out the relatively low number of people who switch their current accounts as part of their money management.

Posted by Tom Burroughs.