When it comes to credit cards, a portion of the debt any family carries is due to the interest rates on those cards. For Florida families, credit card bills may be difficult to keep up with, and the interest rates play a major role in how long those cards may take to pay off. It may surprise some to learn that credit bills may rise soon as federal influences can lead to higher rates.
It is reported that the average interest rate on credit cards is about 14 percent. Some cards are over 20 percent, which can add significantly to the balance over time. The prime rate for credit cards is linked to the federal funds rate, which is essentially controlled by the Federal Reserve. That rate is set to go up in 2015.
When that prime rate rises, interest rates on credit cards can rise, too. While the rise may not be very much, any rise can make it more difficult for a family to keep up with and stay on stable financial footing. Being aware of the rise may help families adjust and plan accordingly as the New Year approaches.
Credit card bills played a major role in the financial crisis a few years ago. For some Florida families, staying on top of credit card debt has been the key to staying afloat and surviving the crisis. Others who have found this to be too difficult or impossible may want to investigate how bankruptcy can help them discharge credit card debt in certain situations, helping them eventually move forward and find financial security again.
Source: cnbc.com, “Beware: Credit card rates are likely to rise in 2015“, Suze Orman, Nov. 17, 2014