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The Government has promised to crack down on credit card firms treating borrowers unfairly.

Secretary of state for business Peter Mandelson and consumer affairs minister Gareth Thomas will hold a Summit with the credit card industry to address mounting concerns that credit card borrowers aren't getting a fair deal in the current downturn.

The Prime Minister Gordon Brown recently announced plans to bring the credit card industry in after seeing evidence of a new practice of card lenders significantly hiking up people's rates, as well as broader concerns about the failure of many companies to pass on cuts in interest rates to borrowers struggling to repay their debts.

Thomas says: "The Government is deeply concerned that borrowers aren't getting a fair deal. That's why we've taken swift action to bring the industry in to look at how costs are being applied to people's existing debts.”

This couldn’t come soon enough - millions of Brits are suffering thanks to huge credit card rates and unhelpful charges. Moneyexpert.com says the average SVR on a credit card in the UK is a whopping 17.59%.

Although the Government action is welcomed, the easiest way of not paying the huge rates is to avoid unsecured credit card debt. It’s unreasonable and it will only diminish your finances further.

To Keep up with news and comments on the current adverse credit market please visit the Adverse Mortgage Blog.