A trend has been happening here in the U.S. lately that credit card users may not be thrilled about. This trend is a general increase in credit card rates.
According to a recent report, the current average interest rate for credit cards in the U.S. is 17.01 percent. One year ago, it was 16.15 percent. Two years ago, it was 15.22 percent.
Rising interest rates can be very impactful for credit card users, particularly for those that tend to carry a high credit card balance. Higher rates can cause balances to build up particularly fast. The interest rates on their credit cards going up is among the things that can sometimes put individuals at risk of their credit card debt getting out of control. When credit card debt becomes unmanageable, individuals may find it worthwhile to look into Chapter 7 bankruptcy or other powerful methods for getting one’s finances back under control.
What is behind the recent credit card rate increases? Among the things being put forward as likely contributors are the many increases the Federal Reserve has made in its benchmark rate over the past two years.
The Federal Reserve is expected to make further rate hikes. So, there seems to be a fair likelihood that credit card interest rates could go up even more.
As this illustrates, among the things that can lead to individuals facing increased financial pressures related to credit card debt are national economic factors, such as what the Federal Reserve decides to do. This underscores how wide of a range of things could trigger potential credit card debt issues for consumers.
What impacts do you think the general rise in credit card interest rates has been having here in Virginia?