Indications from the Federal Reserve show that interest rates will be increased by the end of 2017. This forecast does not bode well for Florida consumers and others across the country that have credit card debt. The prime rate typically adjusts to the federal funds rate, so it will most likely increase as well. Since most credit card interest rates are linked to the prime rate, consumers are apt to be paying more for the balances they carry.
Financial experts suggest several ways to alleviate the expense of high interest payments. One of the most common methods for reducing the amount of interest paid is a balance transfer. Credit card companies frequently offer a zero percent or very low introductory rate for those consumers who transfer their balances. In many cases, there are no transfer fees required, which makes this a favorable option. However, the interest rate will be considerably higher after the introductory period is over.
For some, a personal loan may be a better solution. The interest rates for these loans, which are typically lower than those of credit cards, would be fixed. Consumers can compare loans at local institutions as well as a number of a variety of online lenders. Before seeking a debt consolidation like this, it is important that the individual can adequately budget for the new month loan payment.
It is also a good idea to contact the current credit card companies to discuss available options. Some companies will work with consumers to lower interest rates. Others may offer other arrangements, such as an altered payment schedule.
Credit card debt can be burdensome to Florida consumers. An experienced Florida bankruptcy attorney can help clients in their efforts to eliminate or significantly reduce the level of debt. A knowledgeable lawyer can help consumers in their efforts to regain control of their financial situation.
Source: Forbes, “3 Strategies To Deal With Credit Card Debt In A Rising Rate Environment“, Nick Clements, Dec. 4, 2017