26 per cent of UK consumers do not know their credit card interest rate, according to a trend report from Klarna.

The company, known for its Buy Now, Pay Later service, revealed that only 15 per cent of Brits pay the minimum balance on their credit cards every month.

A further 23 per cent have been hit by unexpected credit card costs, while 59 per cent would rather go to the dentist or do chores than check credit card fine print or work out their APR costs.

“It’s clear that over a year of restrictions has caused a shift in consumer behaviour which looks set to stay, with online shopping continuing to rise,” said Alex Marsh, head of Klarna UK. “As a consequence consumers have also shifted their payment preferences to match their lifestyles.”

Marsh added: “The research has shown that while many consumers own credit cards, they are increasingly getting stung by a lack of understanding of how they work, unexpected fees, and the danger of rolling over debt month to month."

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