What does the Federal Reserve’s decision to raise interest rates by a quarter percentage point mean for you? Do you know 90 percent of the credit cards have variable interest rates? IF yes, than you realize that it means that your interest rates will increase by 0.25 percent in the coming weeks.
In general, it means that for every credit card user in the US, they will be paying a extra $25 for every $1,000 the upcoming year.
According Jason Walowitz of United Financial Counselors, there are several ways to minimize the high-interest credit card payments in 2017.
* You should stop using your credit cards once you have maxed out the full balance. People that overextend their balance has the increased interest rate charges would can ruin finances, and cause difficulty paying off your debts. A good idea is to put the credit card away and use a debit card or cash to make further transactions until your large debt is completely paid off.
* Pay your debt as early as possible, otherwise, you can be liable for huge penalties on your account.
* Go for micropayments A falsehood is that many consumers believe that they must pay their credit card payments on the exact date it is due . Consumers can actually make small payments, either by mail or other online methods and these are called “micropayments.” . These micropayments can help you to reduce your average daily debt burden and also will contribute to lower your monthly interest payments.
* Another idea is to transfer your current balance to a lower interest rate credit card. Many financial institution are able to do this and it is a good idea to ask them about the transfer fee and do some research to confirm that will benefit you.. In many cases, transferring balances can save a good amount additional interest payments. .
* Research, Research, Research! Ask your card issuer to see if a lower interest rate on your credit card can be obtained. Many companies may not offer this option however, it does not hurt to try! A tip: Explain to them that you have received offers from other card issuers who are ready to offer you a better, lower rate, but you would like to stay a valuable client. if you do get the lowest price, it will be beneficial to your financial situation.
United Financial Counselors provides the best service. We provide services such as Budget & Credit Restoration Counseling, Foreclosure Prevention Counseling, Pre & post-bankruptcy counseling, and New Homebuyer Counseling. .
If you are interested in getting any of our above services, visit our website United Counselors and click ‘Contact Us Now’ form. Please check back for our educational weekly blog articles.