Dealing With Skyrocketing Credit Card Interest Rates

At the end of last year, the average household credit card debt was almost $10,000. Additionally, Forbes says the current average credit card interest rate is 24.59%. That is the average rate, not the default rate. That’s outrageous! For anyone carrying credit card debt at that rate (or even close to it), it’s a financial black hole that is severely draining your money and can be very difficult to climb out of. 

It’s vitally important for anyone with a high credit card interest rate to make it a top priority to knock down that debt as fast as possible. Some tips:

Call your creditor. Ask your card company to lower the interest rate. Sometimes this works, sometimes it doesn’t, but it’s a free call, so it doesn’t hurt to ask. However, even if they do lower their rate, it will probably only be 2-3%, still leaving you with a fairly high interest rate.

Attack your card debt. Go out to eat less often, decrease entertainment spending, etc., and use that money saved to pay on your highest interest rate credit card debt.

If those things are not a big enough help, contact CCOA.  CCOA has helped thousands of people pay off their credit card debt, and can help you, too. For more strategies and a free budgeting/financial counseling appointment with a caring financial professional, contact CCOA at 479-521-8877 or schedule an appointment online. Appointments are available in person, by phone or online.