Credit Card Interest Rates Hit Highest Since 1985 (Get Debt Free Doing This NOW)Nov 11, 2022
Today Credit card interest rates have hit their highest level since 1985.
Currently the average credit card APR is at a whopping 19.04% as of November 10th. The former previous record of 19.00% was set during the first week of July 1991. The borrowing rate has jumped a total of 2.74 percentage points since the start of the year. This is the the largest year-to-date increase.
This has all contributed to the FED's battle against inflation which will likely only continue to increase the cost to borrow money and service debt in America.
Here’s what you should and should not do.
You should NOT put things such as food, gasoline, personal expenses and everyday bills on a credit card with an APR of over 19%. The reason for this is you will pay back 2 - 3X what you borrow when interest is accounted for. If you can not afford these items today, you most likely will not be able to afford them tomorrow when interest is taken into consideration.
Here's what you SHOULD do.
If you have credit card debt and can not afford expenses you are forced to pay - you should consider a 0% interest balance transfer and transfer the high interest credit card debt to a 0% interest credit card that will allow you typically 6-12 months to pay off your debt at no interest. The key here is to continue making your former payments and possibly rent out a room in your house or apartment and use that rent money as additional money to pay off your credit card. If you do it this way, you could get out of debt in 8 months rather than 15.9 years (which is how long it would take you if you made the minimum payments, with interest accounted for.