If you think your credit card bill is too much right now, experts say this is the lowest you’ll see all year.
GREENSBORO, NC – I know, the Federal Reserve and the constant increase in interest rates may seem like whitewash to you. This time last year, the average interest on the balance of the credit card was 16.2%, now it is 19.9%. Almost 20%!
The difference between $16 and $20 is not much. The difference from 16% to 20% interest on a balance, is real.
We put percentages in the Credit Rating.
If you have a balance of $5,000, on average,
and you’re paying the lowest interest rate at 16%, you’ll have 24 years to pay off the balance and you’ll pay $15,000 in interest.
But if you change the calculator to reflect 20% interest, not only will you have to raise $16 a month, the interest you will be paying overtime—-now you are looking at almost $20,000 per interest.
So, whatever you can pay on top of the down payment will help you, because your payment won’t be good any time soon.
“What you need to know is that the Federal Reserve said they’re not going to stop hiking but they’re not cutting interest rates until 2023. That means now is the lowest you’ll see in your paycheck. will go there. go up,” said Ja’Net Adams, financial expert, and William Sus University.
His advice? Take credit card debt off your plate. Pay more than the minimum payment and focus on the card with the lowest balance and payment.