Why you don’t want credit card debt with rate increases on the way
According to the Federal Reserve, credit card use rose 6.1% in 2016. Are you part of that increase? With interest rates likely to go up in 2017, variable rate credit card APRs will rise too.
Kiplinger.com’s interest rate forecast says, “The Federal Reserve will also be hiking short-term rates at least twice this year, and possibly more if inflation gets out of hand.” This means your variable rate credit card may cost you as much as one or two percentage points more.
On the surface that might not sound like much. But, because interest on your credit card bill compounds — meaning you not only pay interest on charges you make, but also on the interest charges that accumulate — that increase can make a difference in your monthly budget and how long it takes to pay off the debt. On top of that — when only minimum payments are made, and worse yet, charging continues — it’s easy to get in over your head. Think snowball effect. You don’t want to get caught in that cycle.
Now more than ever an installment loan makes the most sense (and cents) for consolidating debt. A LendingPoint loan can help you unbury with affordable fixed monthly payments at fair rates. The application process is simple and easy. Funds are deposited in your account as quickly as in one business day after final approval. See what we can do for you.
And if you just so happen to want to unbury from the icy weather that’s hit our coast recently, and you’re looking to finance a sunny vacation somewhere warm, check out our new Destination Anywhere Loan. Apply now and see what you qualify for.
For more on how rising interest rates can impact you, read here.