Over the last eight months of 2009, we?ve seen credit cards become a less and less effective way of managing your money. This is an obvious knock on effect from the recession as a whole, but increased charges and weaker deals could mean even those people who have only used their credit card responsibly considering giving them up as they become more expensive to maintain.

In the first half of this year, no less than twelve major credit card providers have upped their interest rates according to financial data provider, Moneyfacts. These include big names such as Capital One, Halifax, American Express and Bank of Scotland, so they are rises that have affected a large amount of people.

?Customers who repay just the minimum will be hardest hit?, said Michelle Slade, Spokeswoman for Moneyfacts. ?With an additional ?408 in interest now being payable on a modest balance of ?2,000.?

It?s not just interest rates that are being hiked though. Across the board credit card deals are becoming less appealing. New cards are being launched with higher APRs that we?ve ever seen and competitive deals are being made tighter and less consumer friendly. Some high profile deals have reduced the number of interest free days or shortened the time to make a payment which can also have huge consequences on personal finance.

Which? Money released a report as far back as April stating many credit card companies had lost touch with reality. It found a massive 28 providers who had increased interest rates or other charges over twelve months in a transparent attempt to squeeze as much cash as possible out of customers.

NatWest and the Royal Bank of Scotland have introduced hikes of up to a massive 4%, although the average across all providers is a less dramatic 0.5%. Editor of Which? Money Martyn Hocking spoke out about providers charging more while many people struggle to pay the bills:
?At a time when we?re all feeling the pinch, it?s hugely disappointing that credit card companies are choosing to put the squeeze on borrowers more than ever. They need to make credit cheaper and their charges more transparent and fair, rather than making it harder than ever for people to make ends meet and pay back their debts.?

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The people in charge of setting interest rates at the bank of England have announced that the interest rates will remain unchanged from the record low of 0.5% this week ? the same announcement they?ve been making for three months in a row.

There have been no plans to do anything major to refresh the economy which is still in crisis, both at home and around the world. This is in contrary to their announcement last month which announced an injection of ?50 billion into the economy under the policy of quantitative easing. Under the scheme, the Bank of England will essentially print money in order to increase supply and stimulate the struggling economy.

This week other surveys have predicted better news showing what are perhaps the first few tentative steps towards economic recovery. UK house prices have also rose by over 2% from April to May according to UK Bank and Estate Agent Halifax.

Despite this, many experts predict that interest rates are set to remain low for the immediate future which is bad news for savers.

In Europe, the central bank has made a similar decision to keep the slightly higher 1% interest rates as they are for the time being, although business groups have called upon the bank to increase their plans for their own ?125 billion quantitative easing scheme.

Economic advisor Roger Bootle told the BBC: ?I think that monetary policy will remain exceptionally loose for a prolonged period.?

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