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The credit card interest rate is notorious for being too high. Among the other types of debt, this is the one with the highest rate. This is the reason why you need to understand it carefully so you do not waste money paying interest on all your credit card transactions. The truth is, there are several ways for you to avoid the burden of your credit card rate. You can simply pay off your balance in full and within the grace period of your billing cycle. It is only when you allow your balance to be carried over to the next month that the interest amount will be added and capitalized into your credit card debt. This is done through the finance charge. According to a study published on NBCNews.com, one out of three card holders carries credit card debt to the next month. The data revealed that this statistic is higher compared to 2015. It also tells us that carrying over a balance is costly because of the high credit card interest rate. With the average rate of 15%, this can end up costing you unnecessarily. The thing is, this is a cost that you can avoid if you only know what to do once your interest rate gets too high. We are not really sure how the economy will hold up in the next few years but one thing is for sure, there is a possibility that the interest rate will go up. You need to start acting now before the authorities make a move to raise the interest rate on your credit cards.