The Associate Press analysis on the situation as it relates to individual consumers:
“The latest increase will likely raise the APR on your credit card 0.25%. So, if you have a 20.4% rate, which is the average according to Bankrate, it might increase to 20.65%.
If you don’t carry a balance from month to month, the APR is less important.
But if, for example, you have a $4,000 credit balance and your interest rate is 20%, if you only make a fixed payment of $110 per month, it would take you a bit under ten years to pay off your credit card debt and you would pay approximately $2,200 in interest.
If your APR increases by a percentage point, paying off your balance would take two years longer and cost an additional $815.”
This means that the raising interest rates are having a huge impact on millions of Americans already struggling with the rising costs of things like eggs, gasoline, and more.
If you are seeing your credit card statements not make any progress at the minimum payments, this part of what is going on: the variable itnerest rates. Many credit card providers like Capital One etc., are up to a standard rate of 29% and a standard repayment period of fifteen years.
Stop the madness and get your interest rates frozen to zero, slash your payments, and be debt free in less than five years with Debt Busters exclusive hardship-based balance reduction program. Apply here or call us at 855-509-5551 for your no cost quote.
Extra: Download the Debt Busters book on the math behind credit card companies by inputting your name and email in the bar to the right(on computers)!