A latest research has managed to reveal that interest rates of credit cards have managed to rise rapidly to hit a 12-year high, despite that fact that the Bank of England base rates have been at an all-time record low.

The average APR on cards currently stands at 18.8%, which is a rise of four percentage points since the very recent low of 14.8% in February 06, as has been revealed by figures from Moneyfacts, the personal finance websites.

The revelations of the report have come right after another report which showed that the reliance of British consumers on credit cards was increasing, with moneysupermarket. com revealing that every 1 in 5 adults have 3 cards or more.

"The UK continues to suffer from a high level of unemployment and providers are worried about the increased risk of customers not repaying their debts. The increased risk continues to be passed on to both new and existing credit card customers through higher rates", said Michelle Slade, spokeswoman for Moneyfacts. co. uk.