Bracing for Credit Card Interest Rate Hikes
As usual, your best bet to avoiding the impact of these interest rate hikes is to pay off your purchases every month.
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PrintOne of the things that is an issue with using credit is the fact that you have to pay interest on what you buy. And this year credit card issuers have been very interested in getting a little more out of you, since the credit card reform legislation is going to require card issuers to have a rationale for raising your interest rates. But since it will take time before these rules go in effect, issuers have been upping interest fees while they can.
I recently received an email from BillShrink.com outlining some of the increases in fees:
BillShrink also points out that Capital One, Citi and Discover are the worst offenders. Don't I know it! I have a credit card from each of those issuers. The real killer for many, of course is that these rates rose just in time for holiday shopping. At this time of year, people are more likely to use their credit cards, and then take two or three months to pay it off. That can result in more interest paid. And remember: interest is something you pay just to borrow the money. You don't get anything in return.
As usual, your best bet to avoiding the impact of these interest rate hikes is to pay off your purchases every month.
I recently received an email from BillShrink.com outlining some of the increases in fees:
"Credit card issuers have raised rates upwards of 15% since January, according to a new study released by BillShrink.com By our calculation, this rate increase means the average American may have paid $110 in credit card interest fees since the beginning of the year!"
BillShrink also points out that Capital One, Citi and Discover are the worst offenders. Don't I know it! I have a credit card from each of those issuers. The real killer for many, of course is that these rates rose just in time for holiday shopping. At this time of year, people are more likely to use their credit cards, and then take two or three months to pay it off. That can result in more interest paid. And remember: interest is something you pay just to borrow the money. You don't get anything in return.
As usual, your best bet to avoiding the impact of these interest rate hikes is to pay off your purchases every month.
