Many people altered the way they spent and dealt with personal finances as a result of the recession. Part of that reformation was how families handled debt. As the recession took hold, interest rates for homes, cars and other loans went down. However, those Florida residents that are still struggling with credit card debt also must deal with the fact that interest rates are on the rise again.
A sweeping law in 2009 changed how credit card companies can do business, essentially capping fees. This led some companies to raise rates to avoid losing too much money. Right now, the average rate for people with what is labeled “fair” credit is 21 percent. That is up over 4 percent from last year.
Those with good or strong credit are paying less in interest rates, but credit card debt is still a problem across all spectrums of the economy. The average credit card debt per household in the country is just over $7,000. Some of the tips for controlling that debt include transferring balances to a card with the lowest rate. Another tip that may work is to call and ask the credit card company for a lower rate.
Credit card debt is unsecured and often compounds to a point where it impacts the ability to deal with other debts, such as a mortgage or other financial obligations. When people in Florida are overwhelmed by any kind of debt, there are options for relief. Filing for bankruptcy may help a family discharge unsecured debt and get other finances under control so as to get back on stable financial ground.
Source: CBS Money Watch, “Many credit card users paying through the nose“, Aimee Picchi, April 21, 2014