Priority Plus Financial on how interest rates are impacting credit card debt
Priority Plus Financial is one of the leading financial institutions founded to help people who need help with clearing debt. One such service includes debt consolidation loans for individuals who have problems with credit card debt.
For the past few years since the pandemic started, there has been a surge of credit card users all over the country. And with this recent surge also comes an increasing number of people who are knee-deep in credit card debt. The numbers show it all; according to a survey conducted, almost more than half (51%) of credit card users have increased credit card debt because of the COVID pandemic.
With jobs scarce and an economy that is not just ravaged by the pandemic, but also due to high gas prices thanks to an ongoing conflict in Eastern Europe, interest rates are now starting to rise up in order for the economy to survive in these troubled times. The Federal Open Market Committee just increased its target federal funds rate range from 0.75% - 1% to 1.5% - 1.75%. In record, this is the highest inflation rate since 1994. This was decided due to a number of reasons; the conflict in Eastern Europe, COVID related lockdowns, and supply chain disruptions are just some of the reasons for the rising inflation rate.
Now what does this mean to you? For the average person already having a hard time dealing with credit card debt, the rising inflation will, no doubt, increase credit card interest rates. When the prime rate goes up, so will the interest rate too. For individuals managing their credit card payments on time, the rising APR will not mean much. Others who are always lagging behind their credit card payments will encounter a more difficult situation though, because the higher APR will prolong the time for credit card debt to clear up.
The longer it takes for credit card debt to clear up, the higher the interest rates go. Remember, it doesn’t matter for credit card companies if it’ll take five to ten years to pay off credit card debt. The longer it takes for anyone to clear up credit card debt, then the higher interest rates these credit card companies get from their customers.
With the rising interest rates, it’s only important to clear up those credit card debts ASAP. Some turn to getting loans in order to pay up the smaller monthly credit card payments into one big monthly payment instead. There are many financial institutions that can help people get debt consolidation loans. Of course, getting debt consolidation loans is also situational; for an individual who has a bad credit rating, getting a loan may not be as simple as it looks. For those situations, find a financial institution that allows individuals with a bad credit rating to take out a loan. Priority Plus Financial can help you with that.
Give them a ring today and they’ll be more than happy to assist you in getting out of a bad credit card debt situation!
